AskMuncher
3年前
$SLRK Solera National Bancorp Announces Third Quarter 2021 Financial Results
Press Release | 10/21/2021
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
norweger1979
3年前
Solera National Bancorp Announces Third Quarter 2021 Financial Results
Company Release - 10/21/2021 9:00 AM ET
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 deleted**
https://ir.solerabankonline.com/news-and-market-data/press-releases/news-details/2021/Solera-National-Bancorp-Announces-Third-Quarter-2021-Financial-Results/default.aspx
norweger1979
4年前
Solera National Bancorp Announces Second Quarter 2021 Financial Results
Jul. 22, 2021 9:00 AM ETSolera National Bancorp, Inc. (SLRK)
Quarterly earnings continue to soar topping $4.0 million, pre-tax.
LAKEWOOD, CO / ACCESSWIRE / July 22, 2021 / Solera National Bancorp, Inc. (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 second quarter and first half of 2021.
Highlights for the quarter and six-months ended June 30, 2021 include:
Pre-tax, pre-provision income climbed to a new record during second quarter 2021 at $4.0 million compared to $3.2 million for first quarter 2021.
YTD net income was up 157% at $5.07 million for the six-months ended June 30, 2021 compared to $1.97 million for the six-months ended June 30, 2020.
Cost of funds remained consistent at 19 basis points for both the second quarter and year-to-date 2021; this is a 54%, or 22 basis point, improvement over the 0.41% cost of funds for the six-months ended June 30, 2020.
The Company's impressive efficiency ratio remained stable throughout first half of 2021 averaging 33.8% for the six-months ended June 30, 2021.
Traditional gross loans continued their controlled growth increasing 7%, or $21.5 million, during the second quarter 2021.
Noninterest-bearing deposits climbed 23%, or $62.3 million, quarter-over-quarter and $146.7 million, or 78%, year-over-year ending June 30, 2021 at $334.6 million.
Asset quality remained healthy with a modest level of criticized assets of 3.49% of total assets. However, nonperforming assets worsened to 1.28% of total assets as of June 30, 2021.
Return on average assets of 2.26% for the three months ended June 30, 2021, was impressive but inflated by $462,000 of gains on the sales of securities and virtually no provision for loan losses recorded. Net of the securities gains, ROAA would have been approximately 1.92%.
Return on average equity was similarly impacted by the aforementioned items allowing the metric to accelerate to 23.8% for the three-months ended June 30, 2021 compared to 16.5% for the linked quarter. Similarly, net of the securities gains, ROAE would have been approximately 20.19%.
For the six-months ended June 30, 2021, the Company reported net income of $5.07 million, or $1.18 per share, compared to $1.97 million, or $0.48 per share, for the six-months ended June 30, 2020. Martin P. May, President and CEO, commented: "Solera had yet another quarter of exciting results to share with our stockholders. Franchise value continues to make meaningful strides forward and I'm proud that the team's unwavering dedication to taking care of our customers is being displayed so clearly in our results."
Operational Highlights
Net interest income after provision for loan and lease losses was $5.00 million for the quarter ended June 30, 2021 compared to $3.74 million for the quarter ended March 31, 2021 and $2.55 million for the quarter ended June 30, 2020. Net interest income after provision for loan and lease losses for the six-months ended June 30, 2021 of $8.74 million increased $4.0 million, or 84%, from the same prior year period. This improvement was partially aided by lower provision expense ($400,000 less) and an increase in interest and fee income earned on Paycheck Protection Program (PPP) loans ($1.82 million higher).
Year-over-year rates on loans are down, but loan growth has led to a $1.22 million, or 24%, increase in interest and fees on traditional loans for the first six-months of 2021 compared to the same period in 2020. Further contributing to the growth in net interest income was the $159,000 decline in interest expense for the first six-months of 2021 compared to the same period in 2020 despite the $126.7 million increase in total deposits during this time.
For the six-months ended June 30, 2021, net interest margin increased 18 basis points to 3.84% from 3.66% for the six-months ended June 30, 2020. Mr. May commented: "The improvement in the Bank's net interest margin comes exclusively from the progress made on cost of funds, which declined 54% year-over-year. Without this progress, the Bank would be experiencing margin compression due to the low interest rate environment and the extremely competitive market for high-quality borrowers, which are demanding low interest rates." For the second quarter 2021, net interest margin was 3.88%, up 9 basis points from 3.79% for the linked quarter, and up 38 basis points from 3.50% for second quarter 2020.
Total noninterest income in second quarter 2021 was $929,000 compared to $368,000 for the linked quarter. The increase in second quarter 2021 was due to gains on the sale of investment securities totaling $462,000 compared to $48,000 for first quarter 2021. Additionally, customer service and other fees improved 71% quarter-over-quarter, from $206,000 for first quarter 2021 to $353,000 for second quarter 2021 due to the increased number of customers serviced by the Bank and expanded product offerings. For the six-months ended June 30, 2021, noninterest income was $1.30 million, a $604,000 improvement over the $693,000 earned during the first six months of 2020.
Total noninterest expense in second quarter 2021 was $1.92 million, compared with $1.51 million for first quarter 2021. For the six-months ended June 30, 2021, total noninterest expense was $3.42 million compared with $2.94 million for the same prior-year period. The increases are the result of franchise growth creating a need for additional resources, primarily personnel, and higher costs directly correlated with more customers. Noninterest expenses have remained well managed throughout the Bank's rapid growth, at 1.68% of average assets (excluding PPP loans) for the six-months ended June 30, 2021 compared to 1.99% for the six-months ended June 30, 2020.
The Company's second quarter 2021 efficiency ratio (noninterest expense divided by the sum of net interest income and noninterest income) remained notable at 35.06% compared to 32.26% for the linked quarter. The efficiency ratio for the six-months ended June 30, 2021 was a marked improvement at 33.77% compared to 47.75% for the six-months ended June 30, 2020.
The Company's income tax expense is approximately 23%, which is a combined rate of 21% for Federal and approximately 4% for State, aided by tax concessions on tax-exempt securities.
Balance Sheet Review and Asset Quality Strength
Total assets of $531.99 million at June 30, 2021 declined 3%, or $19.13 million from $551.12 million at March 31, 2021 and increased 35%, or $136.79 million from $395.20 million at June 30, 2020. The decrease compared to the linked quarter was primarily due to the net decline in PPP loans as forgiveness outpaced new originations. During second quarter 2021, the Bank funded 78 new PPP loans totaling $5.87 million and received forgiveness on 243 PPP loans totaling $43.80 million. This decline was partially offset by growth in the Bank's traditional loan portfolio of $21.48 million. Total asset growth from June 30, 2020 to June 30, 2021 consisted of PPP loans ($108.97 million), a 50% expansion in traditional loans ($107.02 million), additions to the investment portfolio ($18.81 million) and a $4.71 million increase in premises and equipment primarily for a corporate jet.
The allowance for loan and lease losses (ALLL) at June 30, 2021 was unchanged from the linked quarter at $5.50 million, or 1.67% of gross traditional loans, compared to 1.79% of gross traditional loans at March 31, 2021, and $3.77 million, or 1.72% of gross loans at June 30, 2020. Total criticized assets of $18.59 million at June 30, 2021 remained relatively flat compared to the linked quarter, $18.29 million at March 31, 2021 and increased from $13.72 million at June 30, 2020. Criticized assets to total assets remain manageable at 3.49% of total assets as of June 30, 2021 compared to 3.47% as of June 30, 2020. Non-performing loans increased from $955,000 to $6.80 million at June 30, 2021. Ms. Melissa K. Larkin, Chief Financial Officer noted: "Ironically, this change was the primary driver behind a flat ALLL for the quarter, despite the increase in the size the Bank's traditional loan portfolio. When a loan moves to nonaccrual, a specific impairment test is required by GAAP (Generally Accepted Accounting Principles). Since this particular loan is well secured, the specific reserve calculation was less than that applied under the pooled analysis and led to the reduction in the Bank's ALLL as a percentage of gross loans for second quarter 2021."
Total investment securities available-for-sale declined to $73.31 million at June 30, 2021 compared to $74.07 million at March 31, 2021 and increased from $58.50 million at June 30, 2020. Held-to-maturity investment securities were essentially unchanged from the linked quarter at $10.42 million and increased $4.01 million from June 30, 2020. For the six-months ended June 30, 2021, the Company realized $510,000 in gains on the sale of $18.51 million in corporate and municipal bonds.
Total deposits at June 30, 2021 were $467.47 million compared to $445.18 million at March 31, 2021 and $340.72 million at June 30, 2020. Noninterest-bearing demand deposits of $334.62 million, which represent 72% of total deposits, at June 30, 2021 increased $62.33 million, or 23%, versus the linked quarter, and increased $146.74 million from $187.88 million at June 30, 2020. Most other funding sources including short-term borrowings, time deposits and savings and money market deposits declined during second quarter 2021. The majority of these funds were short-term sources used to help fund the volume of PPP loans originated by the Bank and have declined, as expected, given the influx of cash as PPP loans have been forgiven.
Commercial and residential loans past due have remained inconsequential for all periods presented, with the only notable past dues coming from the student loan participation pool. $2.06 million of the student loan participation pool were 30 days+ past due at June 30, 2021. This was down slightly from $2.41 million 30 days+ past due at March 31, 2021. Of the $2.06 million past due, $1.19 million were 90 days+ past due as of June 30, 2021. The student loans are backed by an approximately 97.5% guarantee of the U.S. Treasury (TSRMF) under the Higher Education Act of 1965. This guarantee includes all principal and interest so net credit losses in this portfolio are expected to be minimal. Additionally, the Bank purchased the pool at a discount resulting in the Bank's maximum exposure to credit losses slightly less than 1%.
Capital Strength
The Company's capital ratios continue to be well in excess of the highest required regulatory benchmark levels. Last year, the Bank elected to adopt the community bank leverage ratio (CBLR) as allowed by federal banking agencies for qualified institutions. The CBLR provides for a simple measure of capital adequacy and is calculated by taking Tier 1 capital divided by average total assets for the quarter. Solera calculates the CBLR using Bank-only financial statements. As of June 30, 2021, the Bank's CBLR was 9.6%, which is above the required 9% minimum to qualify for using this simplified method. The Bank's CBLR was 10.1% at March 31, 2021 and 11.0% at June 30, 2020. The declining trend is a direct result of asset growth. Removing PPP loans from the Bank's balance sheet, the Bank's CBLR would have been 12.4% at June 30, 2021, 13.1% at March 31, 2021 and 13.3% at June 30, 2020.
Tangible book value per share, including accumulated other comprehensive income, was $12.60 at June 30, 2021 compared to $11.40 at March 31, 2021, and $10.47 at June 30, 2020. Total stockholders' equity was $54.16 million at June 30, 2021 compared to $48.92 million at March 31, 2021 and $43.40 million at June 30, 2020. Total stockholders' equity at June 30, 2021 included an accumulated other comprehensive gain of $1.58 million compared to a loss of $512,000 at March 31, 2021 and a gain of $1.02 million at June 30, 2020. The fair value of the Bank's available-for-sale investment portfolio increased as of June 30, 2021 due to a drop in longer-term interest rates.
The Company's retained earnings continued to increase, reaching $13.79 million at June 30, 2021, a 190% increase from $4.75 million at June 30, 2020.
Annual Meeting
Ms. Larkin commented: "The Company's Annual Meeting material should be arriving via mail in mid-August. Please be sure to review the material and vote. The meeting will be held at the Bank's main location, 319 S. Sheridan Blvd. Lakewood, CO. Shareholders are invited to attend in person but may also vote electronically. We are grateful for your continued support of Solera."
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 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: Martin P. May, President & CEO (303) 937-6422 and Melissa K. Larkin, EVP & CFO (303) 937-6423
**FINANCIAL TABLES FOLLOW** deleted
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norweger1979
4年前
Solera National Bancorp Announces First Quarter 2021 Financial Results
Company Release - 4/22/2021 9:00 AM ET
Total assets pass $500 million milestone
LAKEWOOD, CO / ACCESSWIRE / April 22, 2021 / 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 March 31, 2021.
Highlights for the quarter ended March 31, 2021 include:
Pre-tax, pre-provision income remained steady during first quarter 2021 at $3.2 million compared to $3.3 million for fourth quarter 2020.
Net interest income of $4.3 million for first quarter 2021 represents a 61% increase over the $2.7 million earned in first quarter 2020.
Tangible book value per share reached $11.40 per share as of March 31, 2021 compared to $10.06 per share as of March 31, 2020.
The Company's impressive efficiency ratio of 32% held constant throughout fourth quarter 2020 and first quarter 2021.
Net interest margin declined 25bps from the linked-quarter to 3.79% for the three months ended March 31, 2021. A significant portion of the Bank's loan growth for the quarter was Paycheck Protection Program (PPP) loans that yield below the Bank's commercial loan portfolio.
The Bank funded 518 new PPP loans during the first quarter totaling $78.7 million in new originations.
Noninterest-bearing deposits rose another 16% during the quarter to $272.3 million, a $37.1 million increase over the linked-quarter, and a $102.6 million increase since March 31, 2020.
Asset quality remained strong with a modest level of criticized assets of 3.32% of total assets and nonperforming assets of 0.17% of total assets as of March 31, 2021.
For the three months ended March 31, 2021, the Company reported net income of $2.0 million, or $0.47 per share, compared to net income of $1.85 million, or $0.43 per share, for the three months ended December 31, 2020, and net income of $723,000, or $0.17 per share, for the three months ended March 31, 2020.
Martin P. May, President and CEO, commented: "The accomplishments of our 40-person team continue to amaze me. We processed another nearly $80 million in PPP loans all while keeping up with our ever-increasing customer volume. We are continually striving to make enhancements to our products and services and truly set the tone for how to provide quality banking for our customers. Our results quarter-after-quarter provide an unbiased measuring stick - we are gaining customers and growing revenue."
Operational Highlights
Net interest income after provision for loan and lease losses was $3.74 million for the quarter ended March 31, 2021 compared to $3.26 million and $2.19 million in the quarters ended December 31, 2020 and March 31, 2020, respectively. The Company recorded provision for loan and lease losses of $605,000 in first quarter 2021 compared to $782,000 and $506,000 in the quarters ended December 31, 2020 and March 31, 2020, respectively. The provision for loan and lease losses during first quarter 2021 was primarily due to the growth in the traditional loan portfolio.
The Company's net interest margin in first quarter 2021 was 3.79% compared to 4.04% in the linked-quarter and 3.86% in the first quarter 2020. Chief Financial Officer, Melissa K. Larkin reflected: "Short-term interest rates continue to be devastatingly low, which has dampened growth in interest and fees on loans and created margin compression. Gross loans outstanding (both PPP and traditional) grew 28% quarter-over-quarter but interest and fees on total loans grew only 4.5% during this same period. Despite the drag on yield, the PPP loans have been very positive for the Bank, contributing nearly $1 million in interest and fee income to the Company during first quarter 2021 and more than $3.0 million in interest and fee income over the last 12 months."
Total noninterest income declined to $368,000 for first quarter 2021 from $650,000 in fourth quarter 2020 and increased from $210,000 in first quarter 2020. Fourth quarter 2020 was bolstered by $400,000 in gains -- $316,000 from the sale of investment securities and $84,000 from the sale of a loan. Comparatively, the Company recorded gains on the sale of available-for-sale securities of $48,000 in first quarter 2021, and $15,000 in first quarter 2020. Customer service fees increased a dramatic 158% from $80,000 for the three months ended March 31, 2020 to $206,000 for the three months ended March 31, 2021 due to the increased number of customers serviced by the Bank and expanded product offerings. Mr. May reflected, "Increasing noninterest income has been a strategic focus of the Company for the last several years. Although we still have room to improve, I am very pleased with our progress, especially the growth in the last twelve months."
Total noninterest expense of $1.51 million in first quarter 2021, increased from $1.41 million in the linked-quarter and $1.46 million in the first quarter of 2020. The majority of the increase was due to an increase in total assets which caused FDIC insurance expenses and OCC assessments to increase, coupled with higher data processing expenses due to the steady flow of new customer accounts. Even during this period of rapid growth, noninterest expense, as a percentage of average assets, have steadily improved at 1.22% for first quarter 2021, compared to 1.35% for fourth quarter 2020 and 2.01% for first quarter 2020.
Robust revenues, coupled with controlled noninterest expenses, allowed the Company's first quarter 2021 efficiency ratio (noninterest expense divided by the sum of net interest income and noninterest income) to remain at the 32% achieved during fourth quarter 2020. The efficiency ratio for the three months ended March 31, 2021 was 32.26%, compared to 32.94% for the quarter-ended December 31, 2020, both of which were a significant improvement compared to 50.61% for the three months ended March 31, 2020.
The Company's income tax expense has remained steady at approximately 23%, which is a combined rate of 21% for Federal and approximately 4% for State, aided by tax concessions on tax-exempt securities. The Company recorded income tax expense of $601,000 for first quarter 2021, compared to $649,000 for fourth quarter 2020 and $213,000 for first quarter 2020.
Balance Sheet Review and Asset Quality Strength
Total assets of $551.12 million at March 31, 2021 increased 26% from $435.79 million at December 31, 2020 and 84% from $300.26 million at March 31, 2020. The majority of this increase came from an increase in loans - both traditional gross loans, which grew $36.12 million, or 13% since December 31, 2020 and PPP loans, which grew 83% or $61.40 million during this period. A $21.20 million increase in investment securities, available-for-sale, also contributed to the overall growth in total assets.
As a percentage of gross loans, the allowance for loan and lease losses remained relatively constant quarter-over-quarter at 1.79%, or $5.50 million, as of March 31, 2021, compared to $4.90 million, or 1.81% at December 31, 2020. Compared to the first quarter of the prior year, the allowance for loan and lease losses has increased 24 basis points, from 1.55% of gross loans at March 31, 2020. This increase is to account for the economic uncertainty from the COVID-19 pandemic, which continues to place financial stress on some borrowers. Total criticized assets of $18.29 million at March 31, 2021, declined marginally compared to the linked-quarter, down $1.12 million from $19.41 million at December 31, 2020. Criticized assets to total assets remain controlled at 3.32% of total assets as of March 31, 2021.
Commercial and residential loans past due have remained inconsequential for all periods presented, with the only notable past dues coming from the student loan participation pool. $2.41 million of the $14.36 million student loan participation pool were 30 days+ past due at March 31, 2021. Of the $2.41 million past due, $1.99 million were 90 days+ past due as of March 31, 2021. The student loans are backed by an approximate 97.5% guarantee of the U.S. Treasury under the Higher Education Act of 1965. This guarantee includes all principal and interest so net credit losses in this portfolio are expected to be minimal. Additionally, the Bank purchased the pool at a discount making the Bank's maximum exposure to credit losses slightly less than 1%.
Total deposits at March 31, 2021 were $445.18 million compared to $382.15 million at December 31, 2020 and $253.20 million at March 31, 2020. Noninterest-bearing demand deposits of $272.29 million, which represent 61% of total deposits at March 31, 2021, increased $37.12 million, or 16%, versus the linked-quarter, and increased $102.56 million, or 60%, from $169.73 million at March 31, 2020.
To support the increase in PPP loans, the Company utilized short-term borrowings, primarily from the FHLB, which ended the first quarter 2021 at $34.13 million borrowed. Ms. Larkin stated, "Our healthy core deposit growth has enabled us to invest in traditional commercial loans and investment securities. Additionally, the Company contributed significantly to the needs of small businesses across the country through PPP lending. Our strong capital ratios and dedicated team members aided our ability to successfully deploy another round of PPP funds to struggling businesses."
Capital Strength
The Bank's capital ratios continue to be in excess of the highest required regulatory benchmark levels. Last year, the Bank elected to adopt the community bank leverage ratio (CBLR) as allowed by federal banking agencies for qualified institutions. The CBLR provides for a simple measure of capital adequacy and is calculated by taking Tier 1 capital divided by average total assets for the quarter. Solera calculates the CBLR using Bank-only financial statements. As of March 31, 2021, the Bank's CBLR was 10.1%, which is above the required 9% minimum to qualify for using this simplified method. The Bank's CBLR was 11.3% at December 31, 2020 and 13.4% at March 31, 2020. The declining trend is a direct result of asset growth. Removing PPP loans from the Bank's balance sheet, the Bank's CBLR would have been 13.1% at March 31, 2021 and 14.2% at December 31, 2020.
Tangible book value per share, including accumulated other comprehensive income (loss), was $11.40 at March 31, 2021 compared to $11.23 at December 31, 2020 and $10.06 at March 31, 2020. Total stockholders' equity was $48.92 million at March 31, 2021, compared to $48.03 million at December 31, 2020 and $41.70 million at March 31, 2020. Total stockholders' equity at March 31, 2021 included an accumulated other comprehensive loss of $512,000 compared to a gain of $751,000 at December 31, 2020 and a gain of $560,000 at March 31, 2020. The fair value of the Bank's available-for-sale investment portfolio has declined since December 31, 2020 due to an increase in longer-term interest rates.
The Company's retained earnings continued their steady climb, reaching $10.72 million at March 31, 2021, a 206% increase from $3.51 million at March 31, 2020. Mr. May reflected, "The consistent contribution of capital from earnings is key to the Bank's balance sheet growth and continued improvement in return on equity. We are proud to announce to our shareholders that we are performing in the upper quartile of our peers with a 16.54% return on average equity for the first quarter of 2021. We are also pleased that our hard work is translating into an increase in the stock price. The Company's stock closed the first quarter of 2020 at $9.00 per share, which was approximately one dollar below book value per share. Today, SLRK stock has gained 41%, ending first quarter 2021 at $12.70 per share and $1.30 above tangible book value. The fruit of our labor is encouraging to see."
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.
Source: Solera National Bank
Contacts: Martin P. May, President & CEO (303) 937-6422
Melissa K. Larkin, EVP & CFO (303) 937-6423
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norweger1979
4年前
Solera National Bancorp Announces 2020 Fourth Quarter and Year-End Financial Results
Company Release - 1/27/2021 9:00 AM ET
Earnings per share grows 62% year-over-year to $1.42 in 2020
LAKEWOOD, Colo., Jan. 27, 2021 (GLOBE NEWSWIRE) -- Solera National Bancorp, Inc. (OTC: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 fourth quarter and twelve-months ended December 31, 2020.
Highlights for the quarter and twelve-months ended December 31, 2020 include:
- Pre-tax pre-provision income grew 91% year-over-year to $9.82 million for the twelve months ended December 31, 2020 compared to $5.13 million for the twelve months ended December 31, 2019.
- Net income increased 67%, or $2.37 million, year-over-year, ending 2020 at $5.93 million compared to $3.56 million for the year ended December 31, 2019.
- Cost of funds improved to 22 basis points for the fourth quarter; year-to-date costs of funds have improved over 50% from 2019 going from 72 basis points for the twelve-months ended December 31, 2019 to 32 basis points for the twelve-months ended December 31, 2020.
- Robust quarterly growth in traditional gross loans, which rose $32.78 million during the fourth quarter to $271.18 million, as of December 31, 2020.
- Noninterest-bearing deposits continued their steady ascent, growing $24.68 million during the fourth quarter to $235.17 million at December 31, 2020.
- As of December 31, 2020 criticized assets represented 4.5% of total assets, compared to 5.4% as of September 30, 2020 and 4.0% at December 31, 2019.
- The fourth quarter 2020 yielded an impressive efficiency ratio of 32.9%, an improvement from 39.7% for the third quarter of 2020 and remarkable progress from a year-ago – 50.6% for the fourth quarter of 2019.
- Return on average assets was 1.63% for the year ended 2020 compared to 1.42% for 2019.
- Similarly, return on average equity improved for the twelve months ended December 31, 2020 to 13.5% compared to 9.4% for the same period in 2019.
For the three-months ended December 31, 2020, the Company reported net income of $1.85 million, or $0.43 per share, compared to net income of $2.12 million or $0.51 per share, for the three-months ended September 30, 2020, and net income of $872,000, or $0.21 per share, for the three-months ended December 31, 2019. The fourth quarter 2020 results included $782,000, or $0.18 per share, in provision expense compared to $355,000, or $0.09 per share, for the linked-quarter and $378,000, or $0.09 per share, for the three-months ended December 31, 2019.
For the twelve-months ended December 31, 2020, the Company reported net income of $5.93 million, or $1.42 per share, compared to $3.56 million, or $0.87 per share, for the twelve-months ended December 31, 2019. The year-to-date 2020 results were hindered by $2.15 million, or $0.51 per share, in provision expense compared to $540,000, or $0.13 per share, for the twelve-months ended December 31, 2019. However, the year-to-date 2020 results were bolstered by $1.48 million, or $0.35 per share, in gains on the sale of investment securities compared to $278,000, or $0.07 per share, for the twelve-months ended December 31, 2019.
Martin P. May, President and CEO, commented: “2020 has been an unparalleled year. I am proud to announce the Company’s results to our shareholders, as our results clearly show how hard our team has worked this year despite the many challenges. We transitioned to remote working with only a few days’ notice and without any interruption in customer service. Then, we worked tirelessly to deliver emergency funding to over 660 small businesses through the Paycheck Protection Program (PPP) all while we continued to grow our core banking business. We continue to attract core banking relationships month after month and those relationships are bearing fruit in our noninterest-bearing deposit results. Noninterest-bearing deposits grew 53% in 2020 and are now well over $200 million.”
Operational Highlights
Net interest income after provision for loan and lease losses was $3.26 million for the quarter ended December 31, 2020 compared to $3.02 million for the quarter ended September 30, 2020 and $2.14 million for the quarter ended December 31, 2019. Net interest income after provision for loan and lease losses for the twelve-months ended December 31, 2020 of $11.02 million increased $2.28 million, or 26%, from the same prior year despite the $1.61 million increase in provision expense during this time. The increase in the provision for loan and lease losses during 2020 was primarily due to the growth in the loan portfolio, uncertainty in the market caused by COVID-19 and the downgrading of several credit relationships experiencing intense pressure from the government-mandated shut-downs.
Despite declining interest rates, loan growth has led to a $1.13 million, or 12%, increase in interest and fees on traditional loans for the twelve-months of 2020 compared to the same period in 2019. Additionally, interest income was aided by an influx of PPP loans during the second quarter that bolstered earnings $2.07 million during the twelve-months ended 2020. Further contributing to the growth in net interest income was the $473,000 decline in interest expense for the twelve months ended2020 compared to the same period in 2019 despite the $145.18 million increase in total deposits during that time.
Net interest margin fell to 3.74% for the twelve-months ended December 31, 2020, a 14 basis points decline from 3.88% for the twelve-months ended December 31, 2019. Chief Financial Officer, Melissa K. Larkin noted “Given that the Federal Reserve reduced interest rates 150 basis points early in 2020, the Bank’s 14 basis point decline in net interest margin year-over-year was relatively small. The Bank’s strong core deposit base enabled the Company to maintain a healthy net interest margin despite the declining yields on earning assets. Additionally, the Bank’s net interest margin began to increase again in fourth quarter 2020, primarily due to higher yields on PPP loans as those loans are being forgiven and the unearned fees are being realized in interest income.” For the fourth quarter 2020, net interest margin was 4.04%, up 49 basis points from 3.55% for the third quarter 2020.
Total noninterest income in fourth quarter 2020 was $650,000 compared to $1.09 million and $268,000 in third quarter 2020 and fourth quarter 2019, respectively. The decrease in fourth quarter 2020 was primarily due to gains on the sale of investment securities totaling $316,000 compared to $866,000 for third quarter 2020 and $113,000 for fourth quarter 2019. Total noninterest income for the twelve-months ended December 31, 2020 jumped 250% to $2.43 million compared to $694,000 for the twelve-months ended December 31, 2019. Customer service and other fees improved 62% year-over-year, from $261,000 for the twelve-months ended December 31, 2019 to $422,000 for the year-to-date 2020. Additionally, other income, consisting primarily of rental income, increased $293,000 year-over-year.
Total noninterest expense in fourth quarter 2020 was $1.41 million, compared with $1.43 million for third quarter 2020. For the twelve-months ended December 31, 2020, total noninterest expense was $5.78 million compared with $4.85 million for the same prior-year period. Compared to prior year, employee compensation and benefits increased $473,000 due to additional staffing to support franchise growth and occupancy expenses increased $197,000 due to the office building purchased in fourth quarter 2019. Other general and administrative expenses increased $277,000 as a result of higher data processing expenses due to the continued surge in new customer accounts. However, as a percentage of average assets, noninterest expenses have remained well managed throughout the Bank’s rapid growth, at 1.91% for the twelve-months ended December 31, 2020 compared to 1.93% for the twelve-months ended December 31, 2019. [Note: the increase in total assets due to the PPP loans has been removed for purposes of this calculation.]
The Company’s fourth quarter 2020 efficiency ratio (noninterest expense divided by the sum of net interest income and noninterest income) reached an impressive 32.94%. The efficiency ratio for the twelve-months ended December 31, 2020 was 41.16% compared to 49.98% for the twelve-months ended December 31, 2019.
Income tax expense for the twelve months of 2020 remained essentially unchanged at 22.7% in 2020 from 22.4% in 2019.
Balance Sheet Review and Asset Quality Strength
Total assets of $436.04 million at December 31, 2020 increased from $404.68 million at September 30, 2020 and $282.11 million at December 31, 2019. The increase compared to the linked-quarter was primarily due to the $32.78 million growth in the Bank’s traditional loan portfolio, a $10.65 million growth in the available-for-sale investment portfolio, and a $4.87 million increase in premises and equipment for a corporate jet, partially offset by PPP loans granted forgiveness ($19.67 million). Total asset growth from December 31, 2019 to December 31, 2020 consisted of PPP loans ($73.71 million), a 26% expansion in traditional loans ($55.73 million) and additions to the investment portfolio ($23.78 million).
Net traditional loans, after allowance for loan and lease losses, were $265.50 million at December 31, 2020 compared to $233.51 million at September 30, 2020 and $212.02 million at December 31, 2019. Net loan growth of $31.99 million during the fourth quarter of 2020 was driven by commercial loan originations of $54.54 million partly offset by payoffs, pay downs and an increase in the allowance for loan losses totaling $22.55 million. For the twelve-months ended December 31, 2020, the $53.48 million expansion in net traditional loans consisted primarily of commercial loan originations totaling $99.80 million, a net decrease in student loans of $1.53 million and payoffs, pay downs and an increase in the allowance for loan losses totaling $44.79 million. Additionally, the Company funded 665 PPP loans during 2020 totaling $93.72 million. These loans are fully guaranteed by the Small Business Administration and were issued to provide emergency relief to small businesses while businesses were closed due to the government’s stay-at-home order.
The allowance for loan and lease losses at December 31, 2020 was $4.90 million, or 1.81% of gross traditional loans, compared to $4.12 million, or 1.73% at September 30, 2020, and $2.77 million, or 1.29% of gross loans at December 31, 2019. The 52 basis point increase in the allowance for loan and lease losses year-over-year was largely due to increased uncertainty surrounding loans that were granted payment deferrals at the height of the pandemic, in conjunction with an increase in criticized loans and overall growth in the loan portfolio. Total criticized assets of $19.41 million at December 31, 2020 decreased compared to the linked-quarter, down $2.37 million from $21.77 million at September 30, 2020 and increased $8.04 million from $11.37 million at December 31, 2019. Despite the increase, criticized assets to total assets remain manageable at 4.45% of total assets as of December 31, 2020.
Total investment securities available-for-sale increased $10.65 million at December 31, 2020 compared to $42.23 million at September 30, 2020 and $29.09 million at December 31, 2019. Held-to-maturity investment securities were essentially unchanged from the linked quarter at $10.42 million. The Company realized gains from the sales of securities of $316,000 during the three-months ended December 31, 2020, bringing the total gains on sales of securities for 2020 to $1.48 million.
Total deposits at December 31, 2020 were $382.15 million compared to $339.69 million at September 30, 2020 and $236.97 million at December 31, 2019. Noninterest-bearing demand deposits of $235.17 million, which represent 62% of total deposits, at December 31, 2020 increased $24.68 million, or 12%, versus the linked-quarter, and increased $81.07 million from $154.11 million at December 31, 2019.
Commercial and residential loans past due have remained inconsequential for all periods presented, with the only notable past dues coming from the student loan participation pool. Approximately 5% of the Bank’s traditional loan portfolio remained on payment deferral as of December 31, 2020, down from the 29% originally granted payment deferral. These concessions were granted to provide some relief to borrowers during the COVID-19 lock-down. $3.50 million of the student loan participation pool were 30 days+ past due at December 31, 2020. This was up from $2.91 million 30 days+ past due at September 30, 2020. Of the $3.50 million past due, $2.11 million were 90 days+ past due as of December 31, 2020. The student loans are backed by an approximately 97.5% guarantee of the U.S. Treasury under the Higher Education Act of 1965. This guarantee includes all principal and interest so net credit losses in this portfolio are expected to be minimal. Additionally, the Bank purchased the pool at a discount resulting in the Bank’s maximum exposure to credit losses slightly less than 1%.
Capital Strength
The Company’s capital ratios continue to be well in excess of the highest required regulatory benchmark levels. The Bank elected to adopt the community bank leverage ratio (CBLR) as allowed by federal banking agencies for qualified institutions in first quarter 2020. The CBLR provides for a simple measure of capital adequacy and is calculated by taking Tier 1 capital divided by average total assets for the quarter. Solera calculates the CBLR using Bank-only financial statements. As of December 31, 2020, the Bank’s CBLR was 11.3%, well above the required 9% minimum to qualify for using this simplified method. The growth in total assets associated with the PPP loans originated during the second quarter 2020 was the primary driver of the 2.9% decline in the Bank’s CBLR year-over-year (down from 14.2% at December 31, 2019). Excluding the PPP loans, the Bank’s fourth quarter 2020 CBLR would have remained 14.2%. Chairman Michael Quagliano commented, “We were aiming to pay our first dividend in the fourth quarter of 2020, but decided it prudent to maintain all of our capital until the uncertainty of the pandemic is behind us. Once businesses are allowed to be fully opened without government intervention and our asset quality remains stable for consecutive quarters, we will pay a dividend. We are hopeful that will occur during the fourth quarter of 2021.”
Tangible book value per share, including accumulated other comprehensive income, was $11.23 at December 31, 2020 compared to $10.75 at September 30, 2020, and $9.77 at December 31, 2019. Total stockholders' equity was $48.03 million at December 31, 2020 compared to $45.98 million at September 30, 2020 and $40.53 million at December 31, 2019. The $2.05 million increase in total equity is primarily due to retained earnings and secondarily due to the exercise of vested stock-options.
The fair value of the Bank's available-for-sale investment portfolio has improved from a year ago due to a decline in longer-term interest rates. As of December 31, 2020, the available-for-sale investment portfolio had a gain of $751,000 compared to gains of $549,000 and $118,000 at September 30, 2020 and December 31, 2019, respectively.
Finally, Mr. Quagliano stated, “I’m excited to announce that we have made two stellar additions to our Board of Directors, Jordan Wright and Kreighton Reed. We believe each of their talents will provide valuable support to the strategic initiatives of Solera National Bank.”
Mr. Wright currently serves as Co-founder and CEO at Atomic Financial (https://atomic.financial/). Prior to starting Atomic Financial, Mr. Wright was the Co-founder and CEO at Unbill, a company he sold to online banking software provider Q2 (QTWO). Prior to starting Unbill, Mr. Wright helped start a cybersecurity company, NextPage, that was acquired by Proofpoint (PFPT) in December of 2011. Mr. Wright received a Bachelor’s Degree in Statistics from Brigham Young University. Mr. Wright loves the financial technology space and sits on several other boards / advisory boards of FinTech companies.
Mr. Reed is currently Executive Vice President of Business Development for Solera National Bank. Mr. Reed joined the Bank in May 2016 as Vice President, Branch Manager. In June 2018, Mr. Reed was promoted to Senior Vice President, as head of the retirement division. In April 2019, Mr. Reed’s role expanded to his current position where he is responsible for innovation. He is tasked with finding and developing strategic partnerships that will lead to long-term value-drivers for the Bank including new products, services, and technologies. Prior to joining the bank, Mr. Reed worked for Wells Fargo Bank for 9 years in various management positions in the retail banking sector. At Wells Fargo, Mr. Reed gained experience in diverse geographic markets including Alaska, Colorado, Nevada, Tennessee, Utah, and Wisconsin. He completed his B.A. in Latin American Studies at Brigham Young University. Mr. Reed has been active in volunteering with the Boy Scouts of America, and most recently was a Cubmaster in the Denver Area.
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 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.
Source: Solera National Bank
Contact: Martin P. May, President & CEO (303) 937-6422
-or-
Melissa K. Larkin, EVP CFO/COO (303) 937-6423
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norweger1979
4年前
Solera National Bancorp Announces Third Quarter 2020 Financial Results
Company Release - 10/22/2020 9:00 AM ET
Second consecutive quarter with record-setting earnings. ROAA tops 2% for the quarter and NIB deposits surpass $200 million.
LAKEWOOD, Colo., Oct. 22, 2020 (GLOBE NEWSWIRE) -- Solera National Bancorp, Inc. (OTC: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 third quarter and nine months ended September 30, 2020.
Highlights for the quarter and nine-months ended September 30, 2020 include:
-Third quarter 2020 net income eclipsed the prior-quarter’s record-setting net income, growing 70% to $2.12 million, compared to $1.25 million for second quarter 2020.
-YTD net income is up 52% at $4.09 million for the nine-months ended September 30, 2020 compared to $2.69 million for the nine-months ended September 30, 2019.
-Cost of funds improved to 27 basis points for the third quarter; year-to-date costs of funds have improved over 50% from 2019 going from 78 basis points for the nine-months ended September 30, 2019 to 36 basis points for the nine-months ended September 30, 2020.
-Robust quarterly growth in traditional gross loans, which rose $18.58 million during the third quarter to $238.40 million, as of September 30, 2020.
-Noninterest-bearing deposits continued their steady upward trajectory, growing $22.62 million during the third quarter to $210.50 million at September 30, 2020.
-Asset quality measures weakened during the quarter as more loans were put on watch given the current economic uncertainty. As of September 30, 2020 criticized assets represent 5.4% of total assets, compared to 3.5% as of June 30, 2020 and 3.6% at September 30, 2019.
-Return on average assets was 2.12% for third quarter 2020 and a healthy 1.58% for the nine-months ended September 30, 2020.
-Return on average equity was 18.95% for the third quarter 2020 compared to 11.71% for the second quarter 2020 and 12.70% for the nine-months ended September 30, 2020.
For the three-months ended September 30, 2020, the Company reported net income of $2.12 million, or $0.51 per share, compared to net income of $1.25 million or $0.30 per share, for the three-months ended June 30, 2020, and net income of $952,000, or $0.23 per share, for the three-months ended September 30, 2019. The third quarter results included $355,000, or $0.09 per share, in provision expense compared to $504,000 for the linked-quarter and $79,000, or $0.02 per share, for the three-months ended September 30, 2019.
For the nine-months ended September 30, 2020, the Company reported net income of $4.09 million, or $0.98 per share, compared to $2.69 million, or $0.66 per share, for the nine-months ended September 30, 2019. The year-to-date 2020 results were hindered by $1.37 million, or $0.33 per share, in provision expense compared to $162,000, or $0.04 per share, for the nine-months ended September 30, 2019. However, the year-to-date 2020 results were bolstered by $1.16 million, or $0.28 per share, in gains on the sale of investment securities compared to $165,000, or $0.04 per share, for the nine-months ended September 30, 2019.
Martin P. May, President and CEO, commented: “The challenges of 2020 have required our team to adjust quickly to unprecedented market conditions. Thus far, we have been able to identify opportunities that have allowed us to deliver solid results. However, the pandemic has caused headwinds for numerous clients. Those in the hospitality industry have been hit especially hard. These uncertainties have required us to increase our reserves. We continue to work closely with our clients to help them through these trying times.”
Operational Highlights
Net interest income after provision for loan and lease losses was $3.02 million for the quarter ended September 30, 2020 compared to $2.55 million for the quarter ended June 30, 2020 and $2.30 million for the quarter ended September 30, 2019. Net interest income after provision for loan and lease losses for the nine-months ended September 30, 2020 of $7.76 million increased $1.16 million, or 18%, from the same prior year period despite the $1.20 million increase in provision expense during this time. The increase in the provision for loan and lease losses during the nine months of 2020 was primarily due to the downgrading of several credit relationships as a result of uncertainty in the market caused by COVID-19.
Despite declining interest rates, loan growth has led to an $822,000, or 12%, increase in interest and fees on traditional loans for the first nine months of 2020 compared to the same period in 2019. Additionally, interest income was aided by an influx of PPP loans during the second quarter that bolstered earnings $1.04 million during the nine-months ended 2020. Further contributing to the growth in net interest income was the $348,000 decline in interest expense for the first nine months of 2020 compared to the same period in 2019 despite the $105.59 million increase in total deposits since September 30, 2019. Mr. May commented: “Revenue growth, driven by a growing loan portfolio, along with expanding low-cost core deposits, has allowed Solera to increase its net interest income, despite the low interest rate environment.”
Net interest margin fell to 3.62% for the nine-months ended September 30, 2020, a 29 basis points decline from 3.91% for the nine-months ended September 30, 2019. The decline was exasperated by the Bank’s participation in PPP loans, which have a lower effective yield than the Bank’s traditional commercial loans. The PPP loans are currently yielding 2.65%, which accounts for approximately 16 basis points of the 29 basis points decline in net interest margin year-over-year. For the third quarter 2020, net interest margin was 3.55%. Removing the impact of the PPP loans, net interest margin would have been 3.80%, only one basis point less than the net interest margin in the third quarter of 2019.
Total noninterest income in third quarter 2020 was $1.09 million compared to $483,000 and $105,000 in second quarter 2020 and third quarter 2019, respectively. The increase in third quarter 2020 was primarily due to gains on the sale of investment securities totaling $866,000 compared to $279,000 for second quarter 2020 and $11,000 for third quarter 2019. Additionally, customer service and other fees improved 59% year-over-year, from $180,000 for the nine months ended September 30, 2019 to $287,000 for same period in the current year. Additionally, other income, consisting primarily of rental income, increased $252,000 year-over-year.
Total noninterest expense in third quarter 2020 was $1.43 million, compared with $1.47 million for second quarter 2020. For the nine-months ended September 30, 2020, total noninterest expense was $4.36 million compared with $3.50 million for the same prior-year period. Compared to prior year, employee compensation and benefits increased $413,000 due to additional staffing to support franchise growth and occupancy expenses increased $171,000 due to the office building purchased in fourth quarter 2019. Other general and administrative expenses increased $271,000 as a result of higher data processing expenses due to the continued surge in new customer accounts. However, as a percentage of average assets, noninterest expenses have remained well managed throughout the Bank’s rapid growth, at 1.99% for the nine-months ended September 30, 2020 compared to 1.92% for the nine-months ended September 30, 2019. [Note: the increase in total assets due to the PPP loans has been removed for purposes of this calculation.]
The Company’s third quarter 2020 efficiency ratio (noninterest expense divided by the sum of net interest income and noninterest income) reached an impressive 39.71%. Chief Financial Officer, Melissa K. Larkin noted, “This efficiency ratio is exceptional for a community bank of our size. While we are continually mindful of controlling overhead costs, the boost to earnings from the PPP loans is aiding this result and will continue to skew the efficiency ratio for all of 2020 and into 2021. However, our team did earn this impressive result. We worked tirelessly to process over 600 loan applications and disburse over $93 million in relief funds, without increasing our staff.” The efficiency ratio for the nine-months ended September 30, 2020 was 44.78% compared to 49.76% for the nine-months ended September 30, 2019.
Income tax expense for the nine months of 2020 benefitted from the purchase of tax-exempt municipal securities in the Company’s available-for-sale investment portfolio, reducing the Company’s effective tax yield to 21.1% in 2020 from 23.9% in 2019.
Balance Sheet Review and Asset Quality Strength
Total assets of $404.68 million at September 30, 2020 increased from $395.20 million at June 30, 2020 and $277.82 million at September 30, 2019. The increase compared to the linked-quarter was primarily due the $18.58 million growth in the Bank’s traditional loan portfolio, partially offset by a reduction in investment securities, for bonds that were sold during the third quarter 2020. Total asset growth from September 30, 2019 to September 30, 2020 consisted of PPP loans ($93.37 million), a 24% expansion in traditional loans ($45.65 million), additions to the investment portfolio ($18.75 million) and the acquisition of an office building ($6.68 million) purchased in fourth quarter 2019.
Net traditional loans, after allowance for loan and lease losses, were $233.51 million at September 30, 2020 compared to $215.43 million at June 30, 2020 and $189.74 million at September 30, 2019. Net loan growth of $18.09 million during the third quarter of 2020 was driven by commercial loan originations of $24.06 million partly offset by payoffs, pay downs and an increase in the allowance for loan losses totaling $5.97 million. For the nine-months ended September 30, 2020, the $21.49 million expansion in net traditional loans consisted primarily of commercial loan originations totaling $45.26 million, a net decrease in student loans of $1.08 million and payoffs, pay downs and an increase in the allowance for loan losses totaling $22.69 million. Additionally, the Company funded 665 PPP loans during 2020 totaling $93.72 million. These loans are fully guaranteed by the Small Business Administration and were issued to provide emergency relief to small businesses while businesses were closed due to the government’s stay-at-home order. The yield on the PPP loans is substantially lower than those in our traditional loan portfolio, averaging 2.65% year-to-date, compared to 4.70% on average for our traditional loans.
The allowance for loan and lease losses at September 30, 2020 was $4.12 million, or 1.73% of gross traditional loans, compared to $3.77 million, or 1.72% at June 30, 2020, and $2.40 million, or 1.24% of gross loans at September 30, 2019. The 49 basis point increase in the allowance for loan and lease losses year-over-year was largely due to increased uncertainty surrounding loans that were granted payment deferrals at the height of the pandemic, in conjunction with an increase in criticized loans and overall growth in the loan portfolio. Total criticized assets of $21.77 million at September 30, 2020 increased compared to the linked-quarter, up $8.05 million from $13.72 million at June 30, 2020 and increased from $9.94 million at September 30, 2019. Despite the increase, criticized assets to total assets remain manageable at 5.38% of total assets as of September 30, 2020.
Total investment securities available-for-sale decreased $16.28 million at September 30, 2020 compared to $58.50 million at June 30, 2020 and $27.49 million at September 30, 2019. CFO Larkin noted, “The Bank capitalized on the market stress that occurred due to the global pandemic and purchased approximately $30.0 million in municipal bonds at relatively cheap prices in March 2020. We then sold approximately 70% of those bonds for gains totaling over $935,000 in June, July and August 2020.” Investment securities held-to-maturity increased $4.00 million during the quarter to $10.42 million, compared to $6.41 million at both June 30, 2020 and September 30, 2019. For the nine-months ended September 30, 2020, the Company realized $1.16 million in gains on the sale of $24.11 million in corporate and municipal bonds.
Total deposits at September 30, 2020 were $339.69 million compared to $340.72 million at June 30, 2020 and $234.10 million at September 30, 2019. Noninterest-bearing demand deposits of $210.50 million, which represent 62% of total deposits, at September 30, 2020 increased $22.62 million, or 12%, versus the linked-quarter, and increased $62.77 million from $147.73 million at September 30, 2019. CEO May commented: “Our team continues to execute our plan to grow core deposits, especially noninterest bearing deposits. We have focused our attention on expanding this customer base and our deposit customers will continue to drive our strategic initiatives.”
Commercial and residential loans past due have remained inconsequential for all periods presented, with the only notable past dues coming from the student loan participation pool. Approximately 8% of the Bank’s traditional loan portfolio remained on payment deferral as of September 30, 2020, down from the 29% originally granted payment deferral. These concessions were granted to provide some relief to borrowers during the COVID-19 lock-down. $2.91 million of the student loan participation pool were 30 days+ past due at September 30, 2020. This was up slightly from $2.71 million 30 days+ past due at June 30, 2020. Of the $2.91 million past due, $1.50 million were 90 days+ past due as of September 30, 2020. The student loans are backed by an approximately 97.5% guarantee of the U.S. Treasury under the Higher Education Act of 1965. This guarantee includes all principal and interest so net credit losses in this portfolio are expected to be minimal. Additionally, the Bank purchased the pool at a discount resulting in the Bank’s maximum exposure to credit losses slightly less than 1%.
Capital Strength
The Company’s capital ratios continue to be well in excess of the highest required regulatory benchmark levels. The Bank elected to adopt the community bank leverage ratio (CBLR) as allowed by federal banking agencies for qualified institutions in first quarter 2020. The CBLR provides for a simple measure of capital adequacy and is calculated by taking Tier 1 capital divided by average total assets for the quarter. Solera calculates the CBLR using Bank-only financial statements. As of September 30, 2020, the Bank’s CBLR was 11.4%, well above the required 9% minimum to qualify for using this simplified method. The growth in total assets associated with the PPP loans originated during the second quarter 2020 was the primary driver of the decline in the Bank’s CBLR year-over-year. Excluding the PPP loans, the Bank’s third quarter 2020 CBLR would have been 14.7%, a 1.4% improvement from the linked-quarter and consistent with prior year’s 14.8%.
Tangible book value per share, including accumulated other comprehensive income, was $10.75 at September 30, 2020 compared to $10.47 at June 30, 2020, and $9.64 at September 30, 2019. Total stockholders' equity was $45.98 million at September 30, 2020 compared to $43.40 million at June 30, 2020 and $39.21 million at September 30, 2019. The $2.58 million increase in total equity is primarily due to retained earnings and secondarily due to the exercise of vested stock-options.
The fair value of the Bank's available-for-sale investment portfolio has improved from a year ago due to a decline in longer-term interest rates. As of September 30, 2020, the available-for-sale investment portfolio had a gain of $549,000 compared to gains of $1.02 million and $222,000 at June 30, 2020 and September 30, 2019, respectively. The decline from the linked-quarter is primarily due to the realization of gains through the sale of securities that occurred during third quarter 2020.
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 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.
Source: Solera National Bank
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norweger1979
5年前
Solera National Bancorp Announces Second Quarter 2020 Financial Results
Quarterly earnings hit new record topping $2.0 million, pre-tax and pre-provision expense
Company Release - 7/23/2020 9:00 AM ET
LAKEWOOD, Colo., July 23, 2020 (GLOBE NEWSWIRE) -- Solera National Bancorp, Inc. (OTC: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 second quarter and first half of 2020.
Highlights for the quarter and six-months ended June 30, 2020 include:
Second quarter 2020 net income was the strongest in the Bank’s history at $1.25 million, a 72% jump from first quarter 2020.
YTD net income was up 13% at $1.97 million for the six-months ended June 30, 2020 compared to $1.74 million for the six-months ended June 30, 2019.
Cost of funds improved to an impressive 35 basis points for the second quarter; year-to-date costs of funds reduced 50% going from 82 basis points for the six-months ended June 30, 2019 to 41 basis points for the six-months ended June 30, 2020.
Traditional gross loans rose $8.1 million since first quarter 2020 ending the second quarter at $219.8 million. Additionally, the Bank originated $93.7 million in Paycheck Protection Program (PPP) loans during the second quarter 2020.
Noninterest-bearing deposits climbed 64%, or $73.4 million, year-over-year ending the quarter at $187.9 million.
Asset quality measures declined given an increase in criticized loans. As of June 30, 2020 criticized assets represent 31.6% of total equity, compared to 20.7% as March 31, 2020 and 21.4% at June 30, 2019. Generally, we disclose asset quality in relation to total assets, but given the increase in assets with the PPP loans, we believe reporting this as a percentage of equity is more meaningful.
Return on average assets stayed healthy at 1.25% for the six-months ended June 30, 2020, despite the $1.0 million provision for loan losses recorded during 2020.
Return on average equity was 9.56% for the six-months ended June 30, 2020 compared to 9.60% for the six-months ended June 30, 2019.
For the six-months ended June 30, 2020, the Company reported net income of $1.97 million, or $0.48 per share, compared to $1.74 million, or $0.43 per share, for the six-months ended June 30, 2019. Martin P. May, President and CEO, commented: “We are proud to deliver another quarter of improving net income despite the unprecedented challenges facing every company around the world today. And, we are poised to remain solid even if the pandemic lingers on. We are committed to working tirelessly to deliver the products and services our customers need. Additionally, we are making careful decisions to advance our strategic initiatives for tomorrow.”
Operational Highlights
Net interest income after provision for loan and lease losses was $4.74 million for the six-months ended June 30, 2020 compared to $4.30 million for the six-months ended June 30, 2019. The Company recorded provision for loan and lease losses of $1.01 million for the six-months ended June 30, 2020 compared with $83,000 for the same prior year period. The increase in the provision for loan and lease losses during the six months of 2020 was primarily due to the uncertainty in the market due to COVID-19.
Despite declining interest rates, loan growth has led to a $583,000, or 13%, increase in interest and fees on loans for the first six months of 2020 compared to the same period in 2019. Additionally, interest income was aided by an influx of PPP loans during the second quarter that bolstered earnings $426,000 compared with prior periods. Further contributing to the growth in net interest income was the $206,000 decline in interest expense for the first six months of 2020 compared to the same period in 2019 despite the $140.1 million increase in total deposits during this time. Mr. May commented: “We increased total deposits 70% year-over-year. At the same time, we reduced interest expense on those deposits 29%. That’s a story of success. Unfortunately, the events of the last four months have muted the impact of this progress on the Bank’s net interest income. With the Federal Reserve swiftly moving interest rates down 150 basis points in March, many of our assets repriced lower reducing the average yield on loans 58 basis points year-over-year. We are grateful for the progress we’ve made in reducing our cost of funds, as this has allowed our net interest spread (the difference between the yield earned on assets and the rate paid on deposits) to remain unchanged, at 3.04%, despite the drastically lower interest rate environment.”
Net interest margin fell to 3.66% for the six-months ended June 30, 2020, a 26 basis points decline from 3.92% for the six-months ended June 30, 2019. The decline was exasperated by the Bank’s participation in PPP loans, which have a lower effective yield than the Bank’s traditional commercial loans. The PPP loans are currently yielding 2.59%, which accounts for approximately 9 basis points of the 26 basis points decline in net interest margin year-over-year. Chief Financial Officer, Melissa K. Larkin noted, “We’re hopeful the effective yield on the PPP loans will improve later in the year as balances are forgiven and the Bank receives payoffs from the SBA; however, that target continues to move as the timeline gets longer and longer. Our original estimates were the PPP loans would have an average life of 6 months. We’ve had to revise those estimates to 12 - 18 months given the changes made to the PPP program in recent weeks. All of this will create noise in our financial results, which is why we’ve tried to bifurcate the PPP totals in our financial schedules.” For the second quarter 2020 interest margin was 3.50%. Removing the impact of the PPP loans, net interest margin would have been 3.68%, or an 18 basis point decline from 3.86% for the linked quarter.
Total noninterest income in second quarter 2020 was $483,000 compared to $210,000 for the linked quarter. The increase in second quarter 2020 was due to gains on the sale of investment securities totaling $279,000 compared to $15,000 for first quarter 2020. Additionally, customer service and other fees improved 30% quarter-over-quarter, from $80,000 for first quarter 2020 to $104,000 for second quarter 2020 due, primarily, to the Bank’s expanding customer base. For the six-months ended June 30, 2020, noninterest income was $693,000, a $372,000 improvement over the $321,000 earned during the first six months of 2019. $162,000 of this change was due to rental income earned on the Bank’s office building purchased during fourth quarter 2019. The $70,000 increase in customer service and other fees year-over-year is directly correlated with the increase in customers.
Total noninterest expense in second quarter 2020 was $1.47 million, compared with $1.46 million for first quarter 2020. For the six-months ended June 30, 2020, total noninterest expense was $2.94 million compared with $2.34 million for the same prior-year period. Compared to prior year, employee compensation and benefits increased $239,000 due to additional staffing to support franchise growth, occupancy expenses increased $109,000 due to the office building purchased in fourth quarter 2019, and other general and administrative expenses increased $204,000 as a result of higher data processing expenses due to the surge in customer accounts. However, as a percentage of average assets, noninterest expenses have remained well managed throughout the Bank’s rapid growth, at 2.09% for the six-months ended June 30, 2020 compared to 2.06% for the six-months ended June 30, 2019. [Note: the increase in total assets due to the PPP loans during second quarter 2020 has been removed for purposes of this calculation.]
The Company’s second quarter 2020 efficiency ratio (noninterest expense divided by the sum of net interest income and noninterest income) improved to a notable 45.21% compared to 50.61% for the linked quarter. The efficiency ratio for the six-months ended June 30, 2020 was 47.75% compared to 51.47% for the six-months ended June 30, 2019.
Income tax expense for the six months of 2020 benefitted from the purchase of tax-exempt municipal securities in the Company’s available-for-sale investment portfolio during the year. Despite the $215,000 growth in pre-tax net income from 2019, the Company recorded income tax expense of $527,000 for the six-months ended June 30, 2020 compared to $543,000 for the six-months ended June 30, 2019.
Balance Sheet Review and Asset Quality Strength
Total assets of $395.20 million at June 30, 2020 increased from $300.26 million at March 31, 2020 and $243.34 million at June 30, 2019. The increase compared to the linked quarter was primarily due to $93.68 million in PPP loans processed during the second quarter, as well as the $8.12 million growth in the Bank’s traditional loan portfolio. Total asset growth from June 2019 to June 2020 consisted of PPP loans ($93.68 million), a 21% expansion in traditional loans ($38.36 million), additions to the investment portfolio ($31.52 million) and the acquisition of an office building ($6.68 million) purchased in fourth quarter 2019.
Net traditional loans, after allowance for loan and lease losses, were $215.43 million at June 30, 2020 compared to $207.82 million at March 31, 2020 and $178.58 million at June 30, 2019. Net loan growth of $7.61 million during the second quarter of 2020 was driven by commercial loan originations of $15.33 million partly offset by payoffs, pay downs and an increase in the allowance for loan losses totaling $7.72 million. For the six-months ended June 30, 2020, the $3.40 million expansion in net traditional loans consisted primarily of commercial loan originations totaling $21.20 million, a net decrease in student loans of $758,000, partly offset by payoffs, pay downs and an increase in the allowance for loan losses totaling $17.03 million. Additionally, the Company funded 662 PPP loans during second quarter 2020 totaling $93.68 million. These loans are fully guaranteed by the Small Business Administration and were issued to provide emergency relief to small businesses while businesses were closed due to the government’s stay-at-home order. The yield on the PPP loans is substantially lower than those in our traditional loan portfolio, averaging 2.59%, compared to 4.64% on average for our traditional loans.
The allowance for loan and lease losses at June 30, 2020 was $3.77 million, or 1.72% of gross traditional loans, compared to $3.27 million, or 1.55% at March 31, 2020, and $2.34 million, or 1.29% of gross loans at June 30, 2019. The 43 basis point increase in the allowance for loan and lease losses year-over-year was largely due to increased uncertainty surrounding the loans granted payment deferrals at the height of the pandemic, in conjunction with an increase in substandard assets and overall growth in the loan portfolio. Total criticized assets of $13.72 million at June 30, 2020 increased compared to the linked-quarter, up $5.08 million from $8.64 million at March 31, 2020 and increased from $8.16 million at June 30, 2019. Despite the increase, criticized assets to total assets remain manageable at 3.47% of total assets as of June 30, 2020 compared to 3.35% as of June 30, 2019.
Total investment securities available-for-sale increased modestly during the quarter to $58.50 million at June 30, 2020 compared to $58.32 million at March 31, 2020. The portfolio increased $31.52 million from $26.98 million at June 30, 2019 primarily due to the purchase of tax-exempt municipal bonds, which had favorable pricing in March 2020 as a result of prevailing market conditions. Investment securities held-to-maturity of $6.41 million have remained unchanged since June 2019. For the six-months ended June 30, 2020, the Company realized $294,000 in gains on the sale of $5.34 million in corporate and municipal bonds.
Total deposits at June 30, 2020 were $340.72 million compared to $253.20 million at March 31, 2020 and $200.64 million at June 30, 2019. Noninterest-bearing demand deposits of $187.88 million, which represent 55% of total deposits, at June 30, 2020 increased $18.15 million, or 11%, versus the linked-quarter, and increased $73.43 million from $114.44 million at June 30, 2019.
Commercial and residential loans past due have remained inconsequential for all periods presented, with the only notable past dues coming from the student loan participation pool. However, 29% of the Bank’s traditional loan portfolio were granted payment deferrals to provide some relief to borrowers during the COVID-19 lock-down. $2.71 million of the student loan participation pool were 30 days+ past due at June 30, 2020. This was up slightly from $2.54 million 30 days+ past due at March 31, 2020. Of the $2.71 million past due, $1.21 million were 90 days+ past due as of June 30, 2020. The student loans are backed by an approximately 97.5% guarantee of the U.S.Treasury under the Higher Education Act of 1965. This guarantee includes all principal and interest so net credit losses in this portfolio are expected to be minimal. Additionally, the Bank purchased the pool at a discount resulting in the Bank’s maximum exposure to credit losses slightly less than 1%.
Capital Strength
The Company’s capital ratios continue to be well in excess of the highest required regulatory benchmark levels. The Bank elected to adopt the community bank leverage ratio (CBLR) as allowed by federal banking agencies for qualified institutions in first quarter 2020. The CBLR provides for a simple measure of capital adequacy and is calculated by taking Tier 1 capital divided by average total assets for the quarter. Solera calculates the CBLR using Bank-only financial statements. As of June 30, 2020, the Bank’s CBLR was 11.0%, well above the required 9% minimum to qualify for using this simplified method. The growth in total assets associated with the PPP loans originated during the second quarter 2020 was the primary driver of the decline in the Bank’s CBLR. Excluding the PPP loans, the Bank’s second quarter 2020 CBLR would have been 13.3%, just slightly lower than 13.4% for first quarter 2020 and 15.6% as of June 30, 2019.
Tangible book value per share, including accumulated other comprehensive income, was $10.47 at June 30, 2020 compared to $10.06 at March 31, 2020, and $9.36 at June 30, 2019. Total stockholders' equity was $43.40 million at June 30, 2020 compared to $41.70 million at March 31, 2020 and $38.10 million at June 30, 2019. The fair value of the Bank's available-for-sale investment portfolio has improved from a year ago due to a decline in longer-term interest rates. As of June 30, 2020, the available-for-sale investment portfolio had a gain of $1.02 million compared to gains of $560,000 and $59,000 at March 31, 2020 and June 30, 2019, respectively.
Annual Meeting
Mr. May commented: “We’d like to alert everyone that your Annual Meeting material should be arriving via mail this week. Please be sure to review the material, vote and return the Direct Deposit Authorization Form. While we have concerns related to COVID-19 and public gatherings, we still plan to convene the Annual Meeting. We will conduct the meeting with these concerns in mind and take the necessary precautions, including sanitization, masks and social distancing. Despite these precautions, we encourage shareholders to vote electronically rather than attend the meeting in person. That is why we included a letter to shareholders in the meeting material this year – to update all shareholders on the health of the Company, the Company’s intent to begin paying dividends and to remind shareholders that we provide quarterly financial results, such as this earnings release, to ensure everyone is aware of the financial health of their investment. We thank you for your continued support of Solera.”
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 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.
Contact:
Martin P. May, President & CEO (303) 937-6422
-or-
Melissa K. Larkin, EVP & CFO (303) 937-6423
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norweger1979
5年前
Solera National Bancorp Announces First Quarter 2020 Financial Results
Total assets reach $300 million milestone
Date: 05-07-2020
For a complete listing of our press releases, please click here
LAKEWOOD, Colo., May 07, 2020 (GLOBE NEWSWIRE) -- Solera National Bancorp, Inc. (OTC: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 months ended March 31, 2020.
Highlights for the quarter ended March 31, 2020 include:
•Net interest income for the first quarter 2020 was $2.69 million compared to $2.52 million for the linked quarter and $2.13 million for the first quarter of 2019.
•Tangible book value per share surpassed the double-digit mark, at $10.06 per share as of March 31, 2020 compared with $9.01 per share as of March 31, 2019.
•Cost of funds have fallen by 40bps year-over-year to 0.48% for the first quarter 2020 compared to 0.88% for the first quarter 2019.
•Net interest margin increased 4 basis points over the linked quarter to 3.86% for the three months ended March 31, 2020 compared to 3.82% for fourth quarter 2019.
•Total assets grew $70.61 million or 31% year-over-year, reaching $300.25 million as of March 31, 2020.
•Noninterest-bearing deposits rose another 10% during the quarter to $169.73 million, a $15.6 million increase quarter-over-quarter.
•Asset quality remained strong with modest level of criticized assets and nonperforming assets of 0.33% of total assets as of March 31, 2020.
For the three months ended March 31, 2020, the Company reported net income of $723,000, or $0.17 per share, compared to net income of $872,000, or $0.21 per share, for the three months ended December 31, 2019, and net income of $837,000, or $0.21 per share, for the three months ended March 31, 2019.
Martin P. May, President and CEO, commented: “The first quarter of 2020 was solid for Solera National Bank. Before consideration of provision expense, the Company’s results were lock-step with the recording-setting results from fourth quarter 2019. Provision-adjusted net income was $1.23 million in first quarter 2020, only a slight decrease compared to provision-adjusted net income of $1.25 million in fourth quarter 2019.” May continued, “We felt it was prudent and necessary to recognize the new-found risks in our loan portfolio given the staggering economic impact of the COVID-19 shut-down. Many, many businesses are struggling and, although it is impossible to know yet the full extent that will be felt by Solera National Bank, we would be remiss to assume the risks in our loan portfolio are unchanged from fourth quarter 2019. As such, we increased our allowance for loan losses from 1.29% of total loans at December 31, 2019 to 1.55% of total loans at March 31, 2020. The increase in provision expense led to the decrease in earnings per share for the quarter.”
May also noted, “Additionally, we felt it prudent, under the social distancing protocols, to delay our annual shareholders meeting, which was originally planned for late May. We look forward to updating shareholders on the Company’s strategic initiatives in August 2020.” Details about the meeting will be mailed to all shareholders of record in advance.
The Bank has worked tirelessly over the last month to get emergency relief money into the hands of customers and other small businesses in need. May reflected, “I’m proud to report that Solera has approved over 600 small businesses for paycheck protection loans that total over $86 million and 95% of those loans have been funded as of today. Our team has worked nights and weekends to get this much-needed money into our communities and I’m continually reminded of the amazing team we have at Solera as we’ve pulled together to offer the small business community access to this program.”
Operational Highlights
Net interest income after provision for loan and lease losses was $2.19 million for the quarter ended March 31, 2020 compared to $2.14 million and $2.06 million in the quarters ended December 31, 2019 and March 31, 2019, respectively. The Company recorded provision for loan and lease losses of $506,000 in first quarter 2020 compared to $378,000 and $71,000 in the quarters ended December 31, 2019 and March 31, 2019, respectively. The increase in the provision for loan and lease losses during fourth quarter 2019 was driven by portfolio growth, whereas the increase in first quarter 2020 was due to the enormous uncertainty in the market due to COVID-19.
The Company's net interest margin in first quarter 2020 was 3.86% compared to 3.82% in the linked-quarter and 3.88% in the first quarter 2019. The slight increase in net interest margin compared to the prior quarter is primarily due to improved cost of funds. The modest decrease in net interest margin compared to the prior year is attributed to an overall decline in market interest rates across all earning assets.
Total noninterest income declined to $210,000 for first quarter 2020 from $268,000 in fourth quarter 2019 and increased from $69,000 in first quarter 2019. The Company recorded gains on the sale of available-for-sale securities of $15,000 in first quarter 2020, compared to $113,000 in fourth quarter 2019 and no gains were recorded in first quarter 2019. Customer service fees increased from $43,000 for the three months ended March 31, 2019 to $80,000 for the three months ended March 31, 2020 due to the increased number of customers serviced by the Bank and expanded product offerings. Additionally, other income increased from $26,000 in first quarter 2019 to $115,000 in first quarter 2020 due to rental income earned on the Bank’s office building purchased during fourth quarter 2019.
Total noninterest expense of $1.46 million in first quarter 2020, increased from $1.35 million in the linked-quarter and $1.03 million in the first quarter of 2019. Compared to prior year, employee compensation and benefits increased $236,000 due to additional staffing to support franchise growth, and other general and administrative expenses increased $115,000 as a result of higher data processing expenses due to the surge in customer accounts. However, as a percentage of average assets, noninterest expenses have remained well managed throughout the Bank’s rapid growth at 2.01% for first quarter 2020 compared to 1.93% for fourth quarter 2019 and 1.83% for first quarter 2019.
Robust revenues coupled with controlled noninterest expenses allowed the Company’s first quarter 2020 efficiency ratio (noninterest expense divided by the sum of net interest income and noninterest income) to remain solid. The efficiency ratio for the three months ended March 31, 2020 was 50.6%, unchanged from the prior quarter, although inferior to the very impressive 46.9% achieved in first quarter 2019.
The Company’s income tax expense has remained steady at approximately 24%, which is a combined rate of 21% for Federal and approximately 3% for State. The Company recorded income tax expense of $213,000 for first quarter 2020 compared to $184,000 for fourth quarter 2019 and $261,000 for first quarter 2019.
Balance Sheet Review and Asset Quality Strength
Total assets of $300.26 million at March 31, 2020 increased from $282.11 million at December 31, 2019 and $229.65 million at March 31, 2019. Gross loans decreased $3.76 million, or 2%, from the linked-quarter to $211.70 million at March 31, 2020, and
increased $35.32 million, or 20%, from first quarter 2019.
Net loans, after the allowance for loan and lease losses, were $207.82 million at March 31, 2020 compared to $212.02 million at December 31, 2019 and $173.51 million at March 31, 2019. Net loans decreased $4.21 million quarter-over-quarter primarily due to the $9.34 million in payoffs coupled with an increase in the allowance for loan losses and a reduced-pace of new originations. Year-over-year, net loans increased $34.30 million or 20%.
The allowance for loan and lease losses at March 31, 2020 was $3.27 million, or 1.55% of gross loans, compared to $2.77 million, or 1.29% at December 31, 2019, and $2.34 million, or 1.32% of gross loans at March 31, 2019. The 26 basis point increase in the allowance for loan and lease losses quarter-over-quarter was due to market uncertainty due to COVID-19. Total criticized assets of $8.64 million at March 31, 2020 declined compared to the linked-quarter, down $2.73 million from $11.37 million at December 31, 2019. Criticized assets to total assets remain low at 2.88% of total assets as of March 31, 2020.
Total investment securities available-for-sale were $58.32 million at March 31, 2020 compared to $29.09 million at December 31, 2019 and $34.08 million at March 31, 2019. The $29.23 million increase during first quarter 2020 was primarily the purchase of tax-exempt municipal bonds which had favorable pricing during this time as a result of prevailing market conditions. Investment securities held-to-maturity of $6.41 million at March 31, 2020 remain unchanged from December 31, 2019 and March 31, 2019.
Commercial and residential loans past due have remained inconsequential for all periods presented, with the only notable past dues coming from the student loan participation pool. $2.54 million of the $15.97 million student loan participation pool were 30 days+ past due at March 31, 2020. Of the $2.54 million past due, $1.88 million were 90 days+ past due as of March 31, 2020. The student loans are backed by an approximate 97.5% guarantee of the U.S. Treasury under the Higher Education Act of 1965. This guarantee includes all principal and interest so net credit losses in this portfolio are expected to be minimal. Additionally, the Bank purchased the pool at a discount resulting in the Bank’s maximum exposure to credit losses slightly less than 1%.
Total deposits at March 31, 2020 were $253.20 million compared to $236.97 million at December 31, 2019 and $186.80 million at March 31, 2019. Noninterest-bearing demand deposits of $169.73 million, which represent 67.0% of total deposits, at March 31, 2020 increased $15.62 million, or 10%, versus the linked-quarter, and increased $74.53 million from $95.19 million at March 31, 2019. This growth allowed the Company to reduce expensive time deposits, which declined $7.57 million from first quarter 2019 to $32.61 million as of March 31, 2020. Chief Financial Officer Melissa Larkin stated, “Growing core deposits is one of our foremost financial goals. We have achieved success in this area because we have focused on delivering the products our clients need with up-to-date technology and superior customer service.”
Capital Strength
The Bank’s capital ratios continue to be well in excess of the highest required regulatory benchmark levels. As of March 31, 2020, the Bank elected to adopt the community bank leverage ratio (CBLR) as allowed by federal banking agencies for qualified institutions. The CBLR provides for a simple measure of capital adequacy and is calculated by taking Tier 1 capital divided by average total assets for the quarter. Solera calculates the CBLR using Bank-only financial statements. As of March 31, 2020 the Bank’s CBLR was 13.4%, well above the required 9% minimum to qualify for using this simplified method. The Bank’s CBLR was 14.2% at December 31, 2019. The decline quarter-over-quarter was due to asset growth.
Tangible book value per share, including accumulated other comprehensive income, was $10.06 at March 31, 2020, compared to $9.77 at December 31, 2019 and $9.01 at March 31, 2019. Total stockholders' equity was $41.70 million at March 31, 2020 compared to $40.53 million at December 31, 2019 and $36.69 million at March 31, 2019. Total stockholders' equity at March 31, 2020 included an accumulated other comprehensive gain of $560,000 compared to a gain of $118,000 at December 31, 2019 and a loss of $224,000 at March 31, 2019. The fair value of the Bank's available-for-sale investment portfolio has improved from a year ago due to a decline in longer-term interest rates.
The Company’s retained earnings continued their steady climb, reaching $3.51 million at March 31, 2020, up from $59,000 as of March 31, 2019.
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:
Martin P. May, President & CEO (303) 937-6422
Melissa K. Larkin, EVP & CFO (303) 937-6423
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http://ir.solerabankonline.com/
norweger1979
5年前
Solera National Bancorp Announces 2019 Fourth Quarter and Year-End Financial Results
Net income increases 60% year-over-year
Company Release - 1/24/2020 12:21 PM ET
LAKEWOOD, Colo., Jan. 24, 2020 (GLOBE NEWSWIRE) -- Solera National Bancorp, Inc. (OTC: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 fourth quarter and twelve-months ended December 31, 2019.
Highlights for the quarter and twelve-months ended December 31, 2019 include:
Net income increased 60%, or $1.33 million, year-over-year, ending 2019 at $3.56 million compared to $2.23 million for the year ended December 31, 2018.
Cost of funds fell 14 basis points to 0.56% for the fourth quarter 2019 compared to 0.70% for the linked-quarter and 0.89% for the fourth quarter 2018.
The average cost of funds for the twelve-months ended December 31, 2019 was 0.72%, a 29 basis point improvement over the 1.01% average cost of funds for the twelve-months ended December 31, 2018.
Net interest margin of 3.88% for the twelve-months ended December 31, 2019 improved from 3.56% for the twelve-months ended December 31, 2018.
Gross loans rose $45.1 million, or 26%, during the year, ending 2019 at $215.5 million, which represents 76% of total assets.
Noninterest-bearing deposits climbed 83%, or $69.8 million, during the year, ending 2019 at $154.1 million, which represents 65% of total deposits.
Solid asset quality; nonperforming loans represent less than 0.01% of gross loans and criticized assets were 4.03% of total assets as of December 31, 2019.
Return on average assets expanded notably during the year, reaching 1.38% for the twelve-months ended December 31, 2019, a 33% increase from 1.04% for the year ended December 31, 2018.
Return on average equity also jumped 35% to 9.22% for the 2019 year, compared to 6.82% for the twelve-months ended December 31, 2018.
For the twelve-months ended December 31, 2019, the Company reported net income of $3.56 million, or $0.87 per share, compared to $2.23 million, or $0.63 per share, for the twelve-months ended December 31, 2018. Martin P. May, President and CEO, commented: “2019 was a year of rapid growth for Solera and we are proud to announce this year’s results to our shareholders. Total assets grew 28% this year, with the majority of that growth in loans, all while the Company remained in the highest quartile among our peers for efficiency. To achieve this level of progress, while maintaining a 50% efficiency ratio, takes a great team and a focused effort at controlling costs.”
For the three-months ended December 31, 2019, the Company reported net income of $872,000, or $0.21 per share, compared to net income of $952,000, or $0.23 per share, for the three-months ended September 30, 2019, and net income of $741,000, or $0.18 per share, for the three-months ended December 31, 2018. The fourth quarter 2019 results included $378,000, or $0.09 per share, in provision expense compared to $79,000, or $0.02 per share, for the linked-quarter and $99,000, or $0.02 per share, for the three-months ended December 31, 2018.
Operational Highlights
Net interest income after provision for loan and lease losses for the twelve-months ended December 31, 2019 was $8.74 million, a 36% or $2.30 million increase over the $6.45 million earned for the twelve-months ended December 31, 2018. This impressive result was a combination of increased interest income, ($10.80 million for 2019 versus $8.79 million for 2018) combined with declining interest expense ($1.52 million for 2019 versus $1.76 million for 2018). Chairman Michael Quagliano reflected, “Every banker on the block should turn their head when they hear that statistic – increasing interest income while shrinking interest expense!”
The results for the fourth quarter 2019 show a similar trajectory, with interest income growing 3%, to $2.85 million, for the three months ended December 31, 2019 from $2.76 million for the three-months ended September 30, 2019, while interest expense declined during the fourth quarter 2019 to $330,000 compared to $382,000 for the linked quarter. However, given the significant growth in loans during the fourth quarter 2019, the provision for loan and lease losses increased drastically at $378,000, compared to $79,000 for the linked quarter, leading to a slight decline in net interest income after provision for loan and lease losses from the prior quarter, at $2.14 million for the three-months ended December 31, 2019 compared to $2.30 million for the quarter ended September 30, 2019.
The combination of loan growth and increasing loan yields accounted for the greater interest income. The average balance in loans outstanding increased $30.1 million from 2018 to 2019 and the average yield on loans expanded approximately 13 basis points to over 5.00% in 2019.
Net interest margin increased 32 basis points for the twelve-months ended December 31, 2019 (3.88%) compared to the twelve-months ended December 31, 2018 (3.56%). Ms. Melissa K. Larkin, Chief Financial Officer, commented: “The Bank achieved margin expansion in a year when the Federal Open Market Committee reduced short-term interest rates 75 basis points. That’s the power of noninterest-bearing deposits. The Bank’s growth in core deposits reduced the cost of funds 29 basis points during 2019, which created margin expansion in a time when most banks are suffering from margin compression.” During the fourth quarter 2019, net interest margin was relatively unchanged from the prior quarter at 3.82% for the three-months ended December 31, 2019 compared to 3.81% for the three-months ended September 30, 2019 and 3.74% for the three-months ended December 30, 2018.
Total noninterest income jumped $438,000, or 171%, during the twelve-months ended December 31, 2019 to $694,000 compared to $256,000 for the twelve-months ended December 31, 2018. The declining interest rate environment allowed the Bank to sell investment securities for gains totaling $278,000 during 2019 compared to $0 during 2018. Additionally, customer service and other fees increased 96% during 2019 from $133,000 for the twelve-months ended December 31, 2018, to $261,000 for the twelve-months ended December 31, 2019 due to the increased number of customers serviced by the Bank and the expanded product offerings.
Fourth quarter 2019 results included gain on the sales of investment securities of $113,000 compared to $11,000 for third quarter 2019; no gain was recorded for fourth quarter 2018. Additionally, other income increased $46,000 during fourth quarter 2019 to $74,000 compared to $28,000 for third quarter 2019. This upturn is due to rental income earned on the Bank’s newly acquired building in the Chery Creek neighborhood of Denver, Colorado. Mr. May commented, “As our team has grown, we have been very creative with managing our workspace. However, we finally reached the point where additional office space was needed. The new building will provide that space and produces rental income until we occupy the rest of the building. The Cherry Creek market in Denver is very robust. Having an office, and eventually a branch, in Cherry Creek will help Solera expand its market presence in Denver.”
Customer service and other fees also continued their steady climb upward during the fourth quarter 2019 growing another 23% quarter-over-quarter, which is, again, directly correlated with the Bank’s growth in new deposit customers. Customer service and other fees were $81,000 for fourth quarter 2019, compared to $66,000 for third quarter 2019 and $36,000 for fourth quarter 2018.
Total noninterest expense followed the same trajectory as income, increasing 28% during the 2019 year. Total noninterest expense was $4.85 million for the twelve-months ended December 31, 2019 compared to $3.78 million for the twelve-months ended December 31, 2018. The largest contributor to the incline was employee compensation and benefits, which increased $839,000, or 37%, year-over-year. However, $208,000 of this increase was a non-cash item related to accelerated employee stock option expense. The remainder of the increase in salaries is due to increased staffing to support franchise growth. Other general and administrative expenses increased $187,000, or 16%, during the year, primarily from higher data processing expenses due to the surge in customers.
Total noninterest expense in fourth quarter 2019 of $1.35 million increased $199,000 from $1.15 million for third quarter 2019. Occupancy expense rose $33,000 due to the new building purchased during the quarter. The remainder of the increase pertains to increased costs due to franchise growth, as previously mentioned.
The Company’s efficiency ratio (noninterest expense divided by the sum of net interest income and noninterest income) for the twelve-months ended December 31, 2019 improved to 49.98% compared to 51.88% for the twelve-months ended December 31, 2018.
Income tax expense of $1.03 million was recorded for the twelve-months ended December 31, 2019 compared to $691,000 for the twelve-months ended December 31, 2018.
Balance Sheet Review and Asset Quality Strength
Total assets of $282.11 million at December 31, 2019 increased from $277.82 million at September 30, 2019 and $220.68 million at December 31, 2018. The increase compared to the linked quarter was due to the growth in gross loans and the purchase of the Cherry Creek property, partially offset by a decline in federal funds sold.
Net loans, after allowance for loan and lease losses, were $212.02 million at December 31, 2019 compared to $189.74 million at September 30, 2019 and $167.66 million at December 31, 2018. Net loan growth of $22.29 million during the fourth quarter of 2019 was driven by commercial loan originations of $31.42 million, partly offset by payoffs, pay downs and an increase in the allowance for loan losses totaling $9.13 million. For the twelve-months ended December 31, 2019, the $44.36 million expansion in net loans consisted primarily of commercial loan originations totaling $73.1 million, a net decrease in student loans of $2.3 million, partly offset by payoffs, pay downs and an increase in the allowance for loan losses totaling $26.44 million.
The allowance for loan and lease losses at December 31, 2019 was $2.77 million, or 1.29% of gross loans, compared to $2.40 million, or 1.24%, at September 30, 2019 and $2.27 million, or 1.33% of gross loans at December 31, 2018. The fourth quarter provision expense of $378,000 increased $299,000 from the linked quarter due to loan growth.
Total investment securities available-for-sale increased to $29.09 million at December 31, 2019 compared to $27.49 million at September 30, 2019 but declined from $31.01 million at December 31, 2018. Investment securities held-to-maturity of $6.41 million remain unchanged from September 30, 2019 and were up $1.5 million from December 30, 2018. The Company realized gain from the sale of securities of $113,000 during the three-months ended December 31, 2019, bringing the total gain on sale of securities for the 2019 year to $278,000.
Total deposits at December 31, 2019 were $236.97 million, a $2.87 million increase from $234.10 million at September 30, 2019 and a $56.29 million, or 31%, increase over the $180.68 million at December 31, 2018. The Company continued to make significant progress shifting the mix of its deposits away from more costly time deposits and into core deposits. Noninterest-bearing demand deposits of $154.11 million at December 31, 2019 rose $6.37 million versus the linked-quarter and climbed $69.82 million, or 83%, since December 31, 2018, while time deposits decreased $8.98 million or 20% during the twelve-months ended December 31, 2019.
The Company continues to maintain sound asset quality metrics with minimal non-performing assets and no other real estate owned for all periods presented. Criticized assets to total assets increased to 4.03% at December 31, 2019 from 3.58% at September 30, 2019 and 3.29% at December 31, 2018.
Capital Strength
The Company’s capital ratios continue to be well in excess of the highest required regulatory benchmark levels. As of December 31, 2019, the Bank’s Tier 1 leverage ratio was 14.2%, Tier 1 risk-based capital was 16.9%, and total risk-based capital was 18.1%.
Tangible book value per share, including accumulated other comprehensive income, was $9.77 at December 31, 2019 compared to $9.64 at September 30, 2019, and $8.71 at December 31, 2018. Total stockholders' equity was $40.53 million at December 31, 2019 compared to $39.21 million at September 30, 2019 and $35.48 million at December 31, 2018. The fair value of the Bank's available-for-sale investment portfolio has improved from a year ago due to a decline in interest rates. As of December 31, 2019, the available-for-sale investment portfolio had a net gain of $118,000 compared to a net gain of $222,000 at September 30, 2019 and a net loss of $577,000 at December 31, 2018.
Total weighted-average shares outstanding increased by 60,000 shares during fourth quarter 2019 as several executives exercised their vested stock options. The Company issued some of these new shares from treasury stock, bringing shares held in treasury to zero.
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 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.
Contact:
Martin P. May, President & CEO (303) 937-6422 or-
Melissa K. Larkin, EVP & CFO,COO (303) 937-6423
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http://ir.solerabankonline.com/News
norweger1979
5年前
Solera National Bancorp Announces Third Quarter 2019 Financial Results
Strong core deposit growth enhances liquidity
Company Release - 10/23/2019 9:00 AM ET
LAKEWOOD, Colo., Oct. 23, 2019 (GLOBE NEWSWIRE) -- Solera National Bancorp, Inc. (OTC: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 third quarter and nine months ended September 30, 2019.
Highlights for the quarter and nine-months ended September 30, 2019 include:
•Net income increased to a record setting $952,000 for the third quarter 2019, ending the nine-months at $2.7 million, an 80% increase over the $1.5 million earned for the nine-months ended September 30, 2018
•Cost of funds dropped to 78 basis points for the nine-months ended September 30, 2019 compared to 104 basis points for the same period last year
•Third quarter 2019 cost of funds fell to 70 basis points, a seven basis point improvement over the linked-quarter
•Net interest margin of 3.88% for the nine-months ended September 30, 2019 improved from 3.47% for the same period last year
•Gross loans rose $22.4 million since December 31, 2018 ending the third quarter at $192.8 million
•Notable growth of $75.8 million, or 105%, year-over-year in noninterest-bearing deposits, with a balance of $147.7 million or 63% of total deposits at September 30, 2019
•Strong asset quality; nonperforming loans of less than 0.01% of gross loans and criticized assets fell to 2.53% of total assets as of September 30, 2019
•Return on average assets improved to 1.48% for the nine-months ended September 30, 2019 compared to 0.98% for the nine-months ended September 30, 2018
•Return on average equity was 9.60% for the nine-months ended September 30, 2019 compared to 6.67% for the nine-months ended September 30, 2018
For the three-months ended September 30, 2019, the Company reported net income of $952,000, or $0.23 per share, compared to net income of $901,000 or $0.22 per share, for the three-months ended June 30, 2019, and net income of $649,000, or $0.16 per share, for the three-months ended September 30, 2018. The third quarter results included $79,000, or $0.02 per share, in provision expense compared to $12,000 for the linked-quarter and $131,000, or $0.03 per share, for the three-months ended September 30, 2018.
For the nine-months ended September 30, 2019, the Company reported net income of $2.69 million, or $0.66 per share, compared to $1.49 million, or $0.44 per share, for the nine-months ended September 30, 2018. Martin P. May, President and CEO, commented: “We are pleased with the growth of our bottom-line results as we begin to leverage the Bank’s capital. Improving earnings per share 50% year-over-year is a significant accomplishment.”
Operational Highlights
Net interest income after provision for loan and lease losses was $2.30 million for the quarter ended September 30, 2019 compared to $2.24 million for the quarter ended June 30, 2019 and $1.74 million for the quarter ended September 30, 2018. Net interest income after provision for loan and lease losses for the nine-months ended September 30, 2019 of $6.60 million increased $2.06 million, or 45%, over the same period last year. This improvement was aided by a decline in provision expense for the nine-months ended September 30, 2019 which was $162,000 compared to $481,000 for the same period last year.
Loan growth, combined with increasing interest rates, lead to an increase of $1.36 million, or 25%, in interest and fee income on loans for the nine-months ended September 30, 2019 compared to the same period in 2018. Interest expense decreased $158,000 for the nine months of 2019 compared to the same period in 2018 despite the $58.03 million increase in total deposits during this time.
Net interest margin decreased 15 basis points from second quarter 2019 (3.96%) to third quarter 2019 (3.81%). Ms. Melissa K. Larkin, Chief Financial Officer, commented: “The decline in net interest margin during the third quarter 2019 is primarily due to the Federal Open Market Committee reducing short-term interest rates twice during the quarter. In both July and September rates were cut 25 basis points and the Bank’s variable rate assets were immediately impacted by this rate reduction.” Year-over-year net interest margin has improved 41 basis points rising from 3.47% for the nine-months ended September 30, 2018 to 3.88% for the same period in 2019.
Total noninterest income in third quarter 2019 was $105,000 compared to $252,000 and $63,000 in second quarter 2019 and third quarter 2018, respectively. Third quarter 2019 results included gains on the sale of investment securities of $11,000 compared to $154,000 for second quarter 2019; no gains were recorded for third quarter 2018. For the nine-months ended September 30, 2019, noninterest income was $426,000 compared to $192,000 for the same period in 2018. Ms. Larkin noted, “The 86% improvement year-over-year in customer service and other fees is directly correlated with the Bank’s growth in new deposit customers and increased product offerings. We are pleased to see this metric showing improvement as this has been an area of focus for us.”
Total noninterest expense in third quarter 2019 of $1.15 million decreased $161,000 from $1.31 million for second quarter 2019. Second quarter 2019 included a charge of $208,000 in employee compensation and benefits related to a change of control clause that caused some employee stock options to become fully vested. Excluding this item, noninterest expense increased $47,000, or 4%, during third quarter 2019 compared to the linked-quarter. Total noninterest expense for the nine-months ended September 30, 2019 was $3.50 million, up $707,000 or 25%, from $2.79 million for the same prior year period. The increase includes the $208,000 nonrecurring employee compensation expense mentioned above, along with higher data processing expenses due to a surge in customers and greater employee compensation and benefits expense due to increased staffing to support franchise growth.
The Company’s third quarter 2019 efficiency ratio (noninterest expense divided by the sum of net interest income and noninterest income) improved to 46.60% compared to 49.46% for the third quarter of 2018 and was essentially unchanged from the linked quarter after adjusting for the nonrecurring employee stock option expenses (46.94%). The efficiency ratio for the nine-months ended September 30, 2019 was 49.76% compared to 53.49% for the nine-months ended September 30, 2018.
Income tax expense increased significantly year-over-year at $843,000 for the nine-months ended September 30, 2019 compared to $452,000 for the same period of 2018 given the improvement in pre-tax income.
Balance Sheet Review and Asset Quality Strength
Total assets of $277.82 million at September 30, 2019 increased from $243.34 million at June 30, 2019 and $216.03 million at September 30, 2018. The increase compared to the linked quarter was due to the growth in gross loans along with higher interest-bearing deposits with banks and an increase in federal funds sold.
Net loans, after allowance for loan and lease losses, were $189.74 million at September 30, 2019 compared to $178.58 million at June 30, 2019 and $161.41 million at September 30, 2018. Net loan growth of $11.16 million during the third quarter of 2019 was driven by commercial loan originations of $14.25 million partly offset by payoffs, pay downs and an increase in the allowance for loan losses totaling $3.09 million. For the nine-months ended September 30, 2019, the $22.08 million expansion in net loans consisted primarily of commercial loan originations totaling $41.63 million, a net decrease in student loans of $2.07 million, partly offset by payoffs, pay downs and an increase in the allowance for loan losses totaling $17.48 million.
The allowance for loan and lease losses at September 30, 2019 was $2.40 million, or 1.24% of gross loans, compared to $2.34 million, or 1.29%, at June 30, 2019 and $2.19 million, or 1.33% of gross loans at September 30, 2019. The third quarter provision expense of $79,000 increased $67,000 from the linked quarter due to loan growth.
Total investment securities available-for-sale increased to $27.49 million at September 30, 2019 compared to $26.98 million at June 30, 2019 and $31.43 million at September 30, 2018. Investment securities held-to-maturity of $6.41 million remain unchanged from June 30, 2019 and were up $1.5 million from September 30, 2018. The Company realized a gain of $11,000 from the sale of a corporate bond during the third quarter 2019.
Total deposits at September 30, 2019 were $234.10 million, a $33.46 million, or 17%, increase from $200.64 million at June 30, 2019 and a $58.03 million, or 33%, increase over the $176.07 million at September 30, 2018. The Company continued to make significant progress growing its core deposit franchise. Noninterest-bearing demand deposits of $147.73 million at September 30, 2019 rose $33.29 million, or 29%, versus the linked-quarter and climbed $75.81 million, or 105%, since September 30, 2018.
The Company continues to experience sound asset quality metrics. At both September 30 and June 30, 2019, the Company had minimal non-performing assets and no other real estate owned. Total criticized assets remain low, at $7.02 million, a decrease of $282,000 from the $7.30 million at September 30, 2018. Criticized assets to total assets declined to 2.53% at September 30, 2019 from 3.35% at June 30, 2019 and 3.38% at September 30, 2018.
Commercial and residential loans past due have remained inconsequential for all periods presented, with the only notable past dues coming from the student loan participation pool. $3.01 million of the $16.40 million student loan participation pool were 30 days+ past due at September 30, 2019. This was down slightly from $3.36 million 30 days+ past due at June 30, 2019. Of the $3.01 million past due, $1.71 million were 90 days+ past due as of September 30, 2019. The student loans are backed by an approximately 97.5% guarantee of the U.S. Treasury under the Higher Education Act of 1965. This guarantee includes all principal and interest so net credit losses in this portfolio are expected to be minimal. Additionally, the Bank purchased the pool at a discount resulting in the Bank’s maximum exposure to credit losses slightly less than 1%.
Capital Strength
The Company’s capital ratios continue to be well in excess of the highest required regulatory benchmark levels. As of September 30, 2019, the Bank’s Tier 1 leverage ratio was 14.8%, Tier 1 risk-based capital was 19.0%, and total risk-based capital was 20.2%.
Tangible book value per share, including accumulated other comprehensive income, was $9.64 at September 30, 2019 compared to $9.36 at June 30, 2019, and $8.47 at September 30, 2018. “We remain committed to growing shareholder equity and providing a solid return in a safe and efficient manner. This quarter confirms that our strategy is working,” reflected Mr. May. Total stockholders' equity was $39.21 million at September 30, 2019 compared to $38.10 million at June 30, 2019 and $34.53 million at September 30, 2018. The fair value of the Bank's available-for-sale investment portfolio has improved from a year ago due to a decline in interest rates. As of September 30, 2019, the available-for-sale investment portfolio had a net gain of $222,000 compared to a net gain of $59,000 at June 30, 2019 and a net loss of $772,000 at September 30, 2018.
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 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.
Contact: Martin P. May, President & CEO (303) 937-6422
-or-
Melissa K. Larkin, EVP & CFO (303) 937-6423
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http://ir.solerabankonline.com/file/Index?KeyFile=400570094
norweger1979
6年前
Solera National Bancorp Announces Second Quarter 2019 Financial Results
Reduced cost of funds creates margin expansion
Company Release - 7/22/2019 9:00 AM ET
LAKEWOOD, Colo., July 22, 2019 (GLOBE NEWSWIRE) -- Solera National Bancorp, Inc. (OTC: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 second quarter and first half of 2019.
Highlights for the quarter and six-months ended June 30, 2019 include:
•Net income increased 106% for the six-months ended June 30, 2019 compared to the same period last year
•Cost of funds dropped to 82 basis points for the six-months ended June 30, 2019 compared to 110 basis points for the same period last year
•Second quarter 2019 cost of funds fell to 77 basis points, an 11 basis point improvement over the linked-quarter
•Net interest margin of 3.96% for second quarter 2019 improved from 3.88% for the linked-quarter and 3.42% for the same period last year
•Gross loans rose $11.1 million since December 31, 2018 ending the second quarter at $181.5 million
•Noninterest-bearing deposits climbed 36%, or $30.2 million, for the six months ended June 30, 2019, ending the quarter at $114.4 million
•Asset quality remained strong with modest level of criticized assets and nonperforming assets of 0.17% of total assets as of June 30, 2019
•Return on average assets improved markedly at 1.53% for the six-months ended June 30, 2019 compared to 0.88% for the six-months ended June 30, 2018
•Return on average equity was 9.60% for the six-months ended June 30, 2019 compared to 6.19% for the six-months ended June 30, 2018
For the six-months ended June 30, 2019, the Company reported net income of $1.7 million, or $0.43 per share, compared to $843,000, or $0.27 per share, for the six-months ended June 30, 2018. Martin P. May, President and CEO, commented: “The combined effect of an additional $32 million in average loan balances and $56 million in average non-interest bearing deposits – which is the difference between the first six months of 2018 and the first six months of 2019 – equates to bottom line results; a doubling of net income. We have spent the last several years working to shift our balance sheet in order to improve our financial results and decrease interest rate risk. We are pleased with the progress we have made. Now, we continue to seek new opportunities to expand our business.”
Operational Highlights
Net interest income after provision for loan and lease losses was $2.24 million for the quarter ended June 30, 2019 compared to $2.06 million for the quarter ended March 31, 2019 and $1.42 million for the quarter ended June 30, 2018. Net interest income after provision for loan and lease losses of $4.30 million increased $1.51 million, or 54%, for the six-months ended June 30, 2019 compared to the same period last year. This improvement was aided by a decline in provision expense for the six-months ended June 30, 2019 which was $83,000 compared to $350,000 for the same period last year.
Loan growth, combined with increasing interest rates, lead to an increase of $1.01 million, or 29%, in interest and fees on loans for the first six months of 2019 compared to the same period in 2018. Interest expense decreased $112,000 for the first six months of 2019 compared to the same period in 2018 despite the $15.4 million increase in total deposits during this time. Mr. May commented: “The progress we’ve made in reducing our cost of funds is perhaps our most important accomplishment. Over the last twelve months, the percentage of noninterest-bearing deposits to total deposits has improved to 57% from 30% as of June 30, 2018. Similarly, time deposits have fallen from 33% of total deposits this time last year to only 19% of total deposits as of June 30, 2019. Improving net interest margin given the headwinds of the flat yield curve is an achievement we are proud to announce to our shareholders.”
Net interest margin rose an additional eight basis points from first quarter 2019 (3.88%) to second quarter 2019 (3.96%). Year-over-year net interest margin has improved 52 basis points rising from 3.40% for the six-months ended June 30, 2018 to 3.92% for the same period in 2019.
Total noninterest income in second quarter 2019 was $252,000 compared to $69,000 and $67,000 in first quarter 2019 and second quarter 2018, respectively. The second quarter 2019 results were bolstered by gains on the sale of investment securities, which totaled $154,000. For the six-months ended June 30, 2019, noninterest income was $321,000 compared to $129,000 for the same period in 2018.
Total noninterest expense in second quarter 2019 of $1.31 million was up $282,000 from $1.03 million for first quarter 2019. The increase was almost entirely related to a nonrecurring increase in employee compensation and benefits of $208,000 related to a change of control clause that caused some employee stock options to become fully vested during the quarter. Excluding this item, employee compensation and benefits increased $54,000, or 8%, during second quarter 2019 compared to the linked-quarter. This increase was primarily due to additional employees to support franchise growth. Total noninterest expense for the six-months ended June 30, 2019 was $2.34 million, an increase of $513,000 or 28%, from $1.83 million for the six-months ended June 30, 2018. The increase includes the $208,000 nonrecurring employee compensation expenses mentioned above, along with increases in data processing expenses due to a substantial increase in customers.
The Company’s second quarter 2019 efficiency ratio (noninterest expense divided by the sum of net interest income and non-interest income) increased to 55.78% compared to 50.58% for the second quarter of 2018. After adjusting for the nonrecurring employee stock option expenses, the efficiency ratio for second quarter 2019 was essentially unchanged at 46.94% compared to 46.86% for the linked quarter. The efficiency ratio for the six-months ended June 30, 2019 was 51.47% compared to 54.87% for the six-months ended June 30, 2018.
Income tax expense increased significantly year-over-year at $543,000 for the six-months ended June 30, 2019 compared to $253,000 for the same period of 2018 given the improvement in pre-tax income.
Balance Sheet Review and Asset Quality Strength
Total assets of $243.34 million at June 30, 2019 increased from $229.65 million at March 31, 2019 and $224.59 million at June 30, 2018. The increase compared to the linked quarter was due to the growth in gross loans along with higher interest-bearing deposits with banks, partially offset by a reduction in investment securities available-for-sale.
Net loans, after allowance for loan and lease losses, were $178.58 million at June 30, 2019 compared to $173.51 million at March 31, 2019 and $159.13 million at June 30, 2018. Net loan growth of $5.07 million during the second quarter of 2019 was driven by commercial loan originations of $12.41 million partly offset by payoffs, pay downs and an increase in the allowance for loan losses totaling $7.34 million. For the six-months ended June 30, 2019, the $10.92 million expansion in net loans consisted primarily of commercial loan originations totaling $27.38 million, a net decrease in student loans of $1.36 million, partly offset by payoffs, pay downs and an increase in the allowance for loan losses totaling $15.10 million.
The allowance for loan and lease losses was essentially unchanged for the second quarter 2019, at $2.34 million, or 1.29% of gross loans. This compared to an allowance for loan and lease losses of $2.34 million, or 1.32% of gross loans, at March 31, 2019 and $2.06 million, or 1.27% of gross loans at June 30, 2018.
Total investment securities available-for-sale declined to $26.98 million at June 30, 2019 compared to $34.08 million at March 31, 2019 and $31.77 million at June 30, 2018. Investment securities held-to-maturity of $6.41 million remain unchanged from March 31 2019 and were up $1.5 million from June 30, 2018. The Company realized a net gain of $154,000 on the sale of $7.93 million in corporate and municipal bonds.
Total deposits at June 30, 2019 were $200.64 million, a $13.84 million, or 7%, increase from $186.80 million at March 31, 2019 and a $15.39 million, or 8%, increase over the $185.25 million at June 30, 2018. The Company continued to make significant progress growing its core deposit franchise. Noninterest-bearing demand deposits of $114.44 million at June 30, 2019 rose $19.25 million, or 20%, versus the linked-quarter and climbed $59.16 million, or 107%, since June 30, 2018.
The Company continues to experience sound asset quality metrics. At both June 30 and March 31, 2019, the Company had minimal non-performing assets and no other real estate owned. Total criticized assets of $8.16 million increased $803,000 over the $7.36 million at June 30, 2018 but remain low at 3.4% of total assets.
The Company had no past due commercial or residential mortgage loans as of June 30, 2019. Additionally, $3.36 million of the student loan participation pool were 30 days+ past due at June 30, 2019. This was up slightly from $3.18 million 30 days+ past due at March 31, 2019. Of the $3.36 million past due, $1.81 million were 90 days+ past due as of June 30, 2019. The student loans are backed by an approximately 97.5% guarantee of the U.S. Treasury under the Higher Education Act of 1965. This guarantee includes all principal and interest so net credit losses in this portfolio are expected to be minimal. Additionally, the Bank purchased the pool at a discount resulting in the Bank’s maximum exposure to credit losses slightly less than 1%.
Capital Strength
The Company’s capital ratios continue to be well in excess of the highest required regulatory benchmark levels. As of June 30, 2019, the Bank’s Tier 1 leverage ratio was 15.6%, Tier 1 risk-based capital was 20.2%, and total risk-based capital was 21.4%.
Tangible book value per share, including accumulated other comprehensive income, was $9.36 at June 30, 2019 compared to $9.01 at March 31, 2019, and $8.32 at June 30, 2018. Total stockholders' equity was $38.10 million at June 30, 2019 compared to $36.69 million at March 31, 2019 and $33.93 million at June 30, 2018. The fair value of the Bank's available-for-sale investment portfolio has improved from a year ago due to a decline in interest rates. As of June 30, 2019, the available-for-sale investment portfolio had a net gain of $59,000 compared to a net loss of $224,000 at March 31, 2019 and a net loss of $713,000 at June 30, 2018.
Annual Meeting and Board Changes
Mr. May commented: “We’d like to take this opportunity to thank Mr. Robert J. Fenton and Mr. Rene Morin for their service and commitment to the Boards of Directors of Solera National Bancorp, Inc. and Solera National Bank. Both Mr. Fenton and Mr. Morin have served on the Company’s Boards since 2014 and have been instrumental in the decisions made to transform this organization.”
Mr. Fenton and Mr. Morin chose not to stand for reelection as directors of the Company upon expiration of their terms at the Company’s upcoming July 23, 2019 Annual Meeting of Shareholders. Their decisions to not stand for reelection are not due to any disagreement with the Company on any matter relating to the Company’s operations, policies, or practices. Mr. Fenton has been a key stakeholder of Solera since its formation in 2006 and stated he will “be available to offer advice and looks forward to watching the Company continue to execute its strategic plan and increase shareholder value.”
Mr. Morin, an original investor in Solera National Bancorp, Inc., commented, “I am leaving the bank in good hands with great employees and board members.”
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 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.
Contact: Martin P. May, President & CEO (303) 937-6422
-or-
Melissa K. Larkin, EVP & CFO (303) 937-6423
- tables deleted -
http://ir.solerabankonline.com/file/Index?KeyFile=398833794
norweger1979
7年前
Solera National Bancorp Announces Second Quarter 2018 Financial Results
Increasing Profitability, Significant Loan and Deposit Growth
Company Release - 7/23/2018 9:00 AM ET
LAKEWOOD, Colo., July 23, 2018 (GLOBE NEWSWIRE) -- Solera National Bancorp, Inc. (OTC: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 second quarter and first half of 2018.
Highlights for the quarter and six-months ended June 30, 2018 include:
•Net income increased 71% for the six-months ended 2018 compared to the same period last year
•Efficiency ratio improved to 54.9% for the six-months ended June 30, 2018 versus 67.0% for the six-months ended June 30, 2017
•Gross loans rose $12.8 million, or 9% versus linked-quarter; and $34.5 million or 27% for the six-months ended June 30, 2018
•Noninterest-bearing deposits climbed 130% for the six-months ended June 30, 2018 reaching $55.3 million
•Net interest margin of 3.44% for the quarter ended June 30, 2018 increased 38 basis points from same period last year
•Successful completion of capital raise added $9.7 million or 35% more capital compared to December 31, 2017
•Asset quality remained strong with no nonperforming assets and modest level of criticized assets
•Return on average assets and return on average equity was 0.84% and 5.82%, respectively
For the three-months ended June 30, 2018, the Company reported net income of $443,000, or $0.13 per share, compared to net income of $400,000 for $0.15 per share, for the three-months ended March 31, 2018, and net income of $292,000, or $0.11 per share, for the three-months ended June 30, 2017. The second quarter results included $282,000, or $0.08 per share, in provision expense compared to $68,000, or $0.02 per share, for the linked-quarter and $0 for the three-months ended June 30, 2017.
For the six-months ended June 30, 2018, the Company reported net income of $843,000, or $0.27 per share, compared to $492,000, or $0.18 per share for the six-months ended June 30, 2017. Martin P. May, President and CEO, commented: “2018 continues to be about growth – the Company has expanded net income, loans, core deposits and capital. Total assets rose over $50 million, pushing the Company above $200 million for the first time in its history. Core deposits have grown $55 million since June 2017 with 79% of that increase coming from noninterest bearing deposits. Our successful capital raise added $9.7 million in common equity providing a foundation to support our current growth trajectory. We are very pleased with the progress we have seen this year and continue to look for new opportunities to expand our business.”
Operational Highlights
Net interest income after provision for loan and lease losses was $1.42 million for the quarter ended June 30, 2018 compared to $1.38 million for the quarter ended March 31, 2018 and $1.15 million for the quarter ended June 30, 2017. Net interest income after provision for loan and lease losses of $2.80 million increased $542,000, or 24%, for the six-months ended June 30, 2018 compared to the same period last year, despite an additional $350,000 in provision expense during the six-months ended June 30, 2018.
Loan growth, combined with increasing interest rates, lead to an increase of $1.08 million, or 45%, in interest and fees on loans for the first six months of 2018 compared to the same period in 2017. Mr. May reflected, “Great clients, great shareholders, and a great team of employees, combined with a thriving Denver economy have helped Solera achieve exciting results this year. The increase in loans has been impressive and yet core-deposit growth has outpaced loans. As a result, the Company's net interest margin continues to expand. Our team has worked hard and with our additional capital we are poised to continue to deliver superior results and increasing franchise value.”
Net interest margin rose eight basis points from first quarter 2018 (3.36%) to second quarter 2018 (3.44%). Year-over-year net interest margin has improved 35 basis points rising from 3.05% for the six-months ended June 30, 2017 to 3.40% for the same period in 2018. The increase in net interest margin compared to first quarter 2017 is attributed to higher loan portfolio yields, along with the significant progress in noninterest-bearing deposit balances.
Total noninterest income in second quarter was $67,000 compared to $62,000 and $58,000 in first quarter 2018 and second quarter 2017, respectively. For the six-months ended June 30, 2018, noninterest income increased 14% to $129,000 compared to $113,000 for the same period in 2017.
Total noninterest expense in second quarter 2018 of $913,000 was virtually unchanged compared to first quarter 2018, and increased $133,000, or 17%, from $780,000 in second quarter 2017. The increase from the prior year is principally due to higher employee compensation and benefits to support franchise growth along with increases in data processing expenses due to a substantial increase in customers. Total noninterest expense for the six-months ended June 30, 2018 was $1.83 million, an increase of $210,000, or 13%, from $1.62 million for the six-months ended June 30, 2017.
Strong revenues coupled with stable noninterest expenses allowed the Company’s second quarter 2018 efficiency ratio (noninterest expense divided by the sum of net interest income and non-interest income) to set a record, dropping to 50.6% compared to 59.9% during the first quarter 2018. The efficiency ratio for the six-months ended June 30, 2018 was also an impressive improvement over the same period of 2017 at 54.9% versus 67.0%.
Income tax expense remained relatively flat year-over-year at $253,000 for the six-months ended June 30, 2018 compared to $256,000 for the same period of 2017, despite the 47% increase in net income before taxes. This is due to the decline in the corporate income tax rate from 34% in 2017 to 21% in 2018, as a result of the Tax Cuts and Jobs Act.
Balance Sheet Review and Asset Quality Strength
Total assets of $224.59 million at June 30, 2018 increased from $198.04 million at March 31, 2018 and $163.99 million at June 30, 2017. The increase compared to the linked quarter was due to the growth in gross loans along with higher interest-bearing deposits with banks.
Net loans, after allowance for loan and lease losses, were $159.13 million at June 30, 2018 compared to $146.57 million at March 31, 2018 and $110.16 million at June 30, 2017. Net loan growth of $12.56 million during the second quarter of 2018 was driven by commercial loan originations of $21.57 million partly offset by payoffs, pay downs and an increase in the allowance for loan losses totaling $9.01 million. For the six-months ended June 30, 2018, the $33.9 million expansion in net loans consisted primarily of commercial loan originations totaling $34.76 million, a net increase in student loans of $8.47 million, partly offset by payoffs, pay downs and an increase in the allowance for loan losses totaling $9.24 million.
The allowance for loan and lease losses increased during the second quarter 2018 by $260,000, to $2.06 million, or 1.27% of gross loans. The increase was driven by the growth in commercial loans outstanding along with an increase in special mention loans. This compared to $1.80 million, or 1.21% of gross loans, at March 31, 2018 and $1.59 million, or 1.42% of gross loans at June 30, 2017. The decline in the allowance for loan and lease losses as a percentage of gross loans since June 2017 is due to an improvement in substandard graded loans and the growth in the student loan portfolio, which contains minimal risk of loss given a U.S. government guarantee of approximately 97.5%.
Total investment securities available-for-sale remained stable at $31.77 million at June 30, 2018 compared to $31.71 million at March 31, 2018 and $35.22 million at June 30, 2017. Investment securities held-to-maturity of $4.9 million remain unchanged from prior periods.
Total deposits at June 30, 2018 were $185.25 million, a $28.73 million increase, or 18%, from $156.52 million at March 31, 2018 and a $52.80 million increase, or 40%, compared to $132.45 million at June 30, 2017. The Company continued to make significant progress growing its core deposit franchise. Noninterest-bearing demand deposits of $55.28 million at June 30, 2018 rose $12.60 million, or 30%, versus the linked-quarter and climbed $43.15 million, or 356%, since June 30, 2017. Additionally, interest-bearing demand deposits increased $23.22 million during the second quarter to $29.33 million compared to $6.11 million at March 31, 2018 and $7.86 million at June 30, 2017. Mr. May noted: “We’ve attracted some important new commercial deposit relationships that will create larger swings in balances than we’ve experienced previously given the nature of their business. We’re eager to offer our superior customer service to these customers and assist with all of their banking needs.”
The Company continues to experience sound asset quality metrics. At both June 30 and March 31, 2018, the Company had no non-performing loans, non-performing assets or other real estate owned. Total criticized assets of $7.36 million increased $1.62 million over the $5.74 million at March 31, 2018 but remain low at 3.28% of total assets.
The Company had no past due commercial loans as of June 30, 2018 and $133,000 from one past due residential mortgage loan. Additionally, $4.25 million of the student loan participation pool were 30 days+ past due at June 30, 2018. This was an improvement from the $5.16 million 30 days+ past due at March 31, 2018. Of the $4.25 million past due, $2.82 million were 90 days+ past due as of June 30, 2018. The student loans are backed by an approximately 97.5% guarantee of the U.S. Treasury under the Higher Education Act of 1965. This guarantee includes all principal and interest so net credit losses in this portfolio are expected to be minimal. Additionally, the Bank purchased the pool at a discount resulting in the Bank’s maximum exposure to credit losses slightly less than 1%.
Capital Strength
The Company’s capital ratios continue to be well in excess of the highest required regulatory benchmark levels. As of June 30, 2018, the Bank’s Tier 1 leverage ratio was 16.1%, Tier 1 risk-based capital was 20.8%, and total risk-based capital was 22.0%.
Tangible book value per share, including accumulated other comprehensive income, was $8.32 at June 30, 2018 compared to $8.52 at March 31, 2018, and $8.66 at June 30, 2017. The decline is primarily due to an increase in the number of shares outstanding by 1,332,307, representing the additional shares sold during the first half of 2018 in the Company’s rights offering. Total stockholders' equity was $33.93 million at June 30, 2018 compared to $26.98 million at March 31, 2018 and $23.78 million at June 30, 2017. The increase in stockholders’ equity is also due to the rights offering which closed on May 31, 2018 and contributed $9.66 million in common equity. Total stockholders' equity at June 30, 2018 included an accumulated other comprehensive loss of $713,000 compared to a loss of $573,000 at March 31, 2018 and $233,000 at June 30, 2017. The fair value of the Bank's available-for-sale investment portfolio has declined from a year ago due to an increase in interest rates.
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 emerging businesses primarily in the Front Range of Colorado. At the core of Solera National Bank is welcoming, inclusive and respectful customer service, a focus on supporting a growing and diverse Colorado 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.
Contact:
Martin P. May, President & CEO (303) 937-6422
-or-
Melissa K. Larkin, EVP & CFO (303) 937-6423
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http://ir.solerabankonline.com/
norweger1979
7年前
Solera National Bancorp Announces Fourth Quarter, Full Year 2017 Financial Results
Sustained Core Profitability, Strong Loan and Deposit Growth
LAKEWOOD, Colo., Jan. 26, 2018 (GLOBE NEWSWIRE) -- Solera National Bancorp, Inc. (OTC:SLRK) (the "Company"), the holding company for Solera National Bank (the "Bank"), a business-focused bank primarily serving the Denver metropolitan area, today reported unaudited financial results for the three and twelve months ended December 31, 2017. For the three months ended December 31, 2017, the Company reported net income before taxes of $511,000, or $0.19 per share, compared to net income before taxes of $452,000, or $0.17 per share for the three months ended September 30, 2017. The Company's net income before taxes for the year ended December 31, 2017 was $1.71 million, or $0.63 per share, compared to net income before taxes of $918,000, or $0.34 per share, for the twelve months ended December 31, 2016.
As a result of the Tax Cuts and Jobs Act that was enacted into law on December 22, 2017, the Company revalued its net deferred tax asset position to reflect the reduction in its federal corporate income tax rate from 35% to 21%. This revaluation resulted in a one-time income tax expense of approximately $610,000, or $0.22 per share, for the fourth quarter of 2017. The fourth quarter 2016 results included a full reversal of the Company's deferred tax asset valuation allowance resulting in a one-time tax benefit of $2.21 million, or $0.81 per share. After considering the impact of taxes, the Company recorded a net loss of $279,000, or $0.10 per share, for the three months ended December 31, 2017, compared to net income of $296,000, or $0.11 per share, for the three months ended September 30, 2017, and net income of $2.09 million, or $0.77 per share, for the three months ended December 31, 2016. The Company's net income for the year ended December 31, 2017 was $509,000, or $0.19 per share, compared to net income of $3.13 million, or $1.15 per share, for the twelve months ended December 31, 2016.
Highlights for the quarter and year ended December 31, 2017 include:
-- Gross loan growth of $10.68 million, or 9.2% in fourth quarter; and $21.93 million, or 20.8% for the year
-- Noninterest-bearing deposit growth of $3.53 million, or 17.2% in fourth quarter; and $18.13 million, or 305% for the year
-- Net interest margin of 3.33% increased 29 basis points from same period in 2016
-- Efficiency ratio of 63.8% improved from 65.0% in linked-quarter
-- Outstanding asset quality metrics
Martin P. May, President and CEO, commented: "We are pleased to report solid results for the fourth quarter and full year, including an annual record for net interest income, significant growth in commercial loan and noninterest-bearing deposits, along with outstanding asset quality. While our fourth quarter results included the impact of a charge to earnings due to the recently passed tax legislation, this tax reform will lead to higher net income and enhance our capital generation capabilities going forward."
Operational Highlights
Net interest income after provision for loan and lease losses was $1.35 million for the quarter ended December 31, 2017 compared to $1.24 million and $1.11 million in the quarters ended September 30, 2017 and December 31, 2016, respectively. For the twelve months of 2017, net interest income after provision for loan and lease losses was a record $4.85 million compared to $4.18 million for the twelve months of 2016. The Company recorded no provision for loan and lease losses in either 2017 or 2016.
The Company's net interest margin in fourth quarter 2017 was 3.33% compared to 3.11% in the linked-quarter and 3.04% in the fourth quarter 2016. The Company's net interest margin for the twelve months of 2017 was 3.14% compared to 2.99% for the twelve months of 2016. During the fourth quarter, the company received loan recovery proceeds of $214,000 of which $39,000 was reflected in interest and fees on loans. Excluding this recovery, net interest margin would have been 3.23% in the fourth quarter of 2017. The increase in net interest margin for the twelve months of 2017 compared to the twelve months of 2016 is largely attributed to a shift in earning assets from investment securities to gross loans partly offset by a modest increase in the cost of funds.
Total noninterest income in fourth quarter 2017 of $58,000 was unchanged versus the fourth quarter of 2016 and represented a slight increase compared to $55,000 in the linked-quarter. Noninterest income was $226,000 for the twelve months ended December 31, 2017 compared to $522,000 for the twelve months ended December 31, 2016. This decline was due to recording no gains on the sale of available-for-sale securities or gains on loans sold in 2017, compared to $157,000 and $125,000, respectively, in 2016.
Total noninterest expense of $900,000 in fourth quarter 2017 compared to $839,000 in the linked-quarter and $1.29 million in the fourth quarter of 2016. The increase from the linked-quarter is principally due to expenses associated with the Company's upcoming capital raise along with higher employee compensation and benefits. The fourth quarter of 2016 included a loss contingency of $514,000 for the jury verdict awarding a severance payment and related interest to our former CEO.
In the fourth quarter of 2017, the Company recorded income tax expense of $790,000 compared to income tax expense of $156,000 in the third quarter of 2017 and a tax benefit of $2.21 million in the fourth quarter of 2016. On December 22, 2017 the Tax Cuts and Jobs Act was signed into law, a tax reform bill which lowers the current corporate federal income tax rate from 35% to 21% effective January 1, 2018. As a result, the Company reduced the value of its net deferred tax assets by $610,000, which was recorded as additional income tax expense during the fourth quarter of 2017. In the fourth quarter of 2016, the Company recorded a full reversal of the deferred tax asset valuation allowance after concluding that it was more likely than not that it will generate sufficient taxable income to realize its net deferred tax assets.
Balance Sheet Review and Asset Quality Strength
Total assets of $173.90 million at December 31, 2017 increased from $167.63 million at September 30, 2017 and $156.09 million at December 31, 2016. The increase versus the linked-quarter was due to solid growth in gross loans partly offset by a reduction in both investment securities available for sale and federal funds sold.
Net loans, after allowance for loan and lease losses, were $125.14 million at December 31, 2017 compared to $114.67 million at September 30, 2017 and $103.38 million at December 31, 2016. Net loan growth was $10.47 million during the fourth quarter of 2017 from loan originations of $15.03 million partly offset by payoffs, pay downs and an increase in the allowance for loan losses totaling $4.56 million. Net loans increased $21.75 million for the twelve months ended 2017 from loan originations of $35.12 million partially offset by loan payoffs, pay downs and an increase in the allowance for loan losses totaling $13.37 million. The strong loan growth during the year was achieved in a disciplined manner and despite competitive pressures.
The allowance for loan and lease losses at December 31, 2017 was $1.75 million, or 1.37% of gross loans, compared to $1.59 million, or 1.36% of gross loans at September 30, 2017, and $1.60 million, or 1.52% of gross loans at December 31, 2016. The increase from the linked-quarter is principally due to a loan recovery of which $175,000 was added to the allowance for loan and lease losses.
Total investment securities available-for-sale were $31.95 million at December 31, 2017 compared to $33.40 million at September 30, 2017 and $36.13 million at December 31, 2016. Investment securities held-to-maturity of $4.90 million at December 31, 2017 increased from $4.50 million at December 31, 2016.
Total deposits at December 31, 2017 were $137.51 million compared to $134.78 million at September 30, 2017 and $126.33 million at December 31, 2016. The Company's focus on noninterest-bearing deposits continued to yield very positive results. Noninterest-bearing demand deposits increased $3.53 million versus the linked-quarter, or 17.2%, to $24.07 million at December 31, 2017, representing a three-fold increase from $5.94 million at December 31, 2016. Mr. May stated, "I couldn't be more proud of our team and the progress made in growing noninterest-bearing deposits. We still have a long way to go to be a high-performing bank for this metric, but that's our goal and our focus."
The Company continues to experience outstanding asset quality metrics, substantially outperforming its peer group. At December 31, 2017, the Company had no non-performing loans, non-performing assets or other real estate owned. Total criticized assets of $4.75 million at December 31, 2017, or 2.73% of total assets, declined from $6.12 million, or 3.92% of total assets at December 31, 2016.
The Company had no past due commercial loans as of December 31, 2017 and $290,000 of past due residential real estate loans. Additionally, $3.03 million of the student loan participation pool were 30 days+ past due at December 31, 2017, of which $2.22 million were 90 days+ past due. The student loans are backed by an approximately 97.5% guarantee of the U.S. Treasury under the Higher Education Act of 1965. This guarantee includes all principal and interest so net credit losses in this portfolio are expected to be minimal. Additionally, the Bank purchased this pool at a discount making the Bank's maximum exposure to credit losses slightly less than 1%.
Capital Strength
The Company's capital ratios are well above the highest required regulatory benchmark levels. As of December 31, 2017, the Bank's Tier 1 leverage ratio was 13.6%, Tier 1 risk-based capital was 17.4%, and total risk-based capital was 18.7%.
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Tangible book value per share, including accumulated other comprehensive income, was $8.67 at December 31, 2017, compared to $8.79 at September 30, 2017 and $8.39 at December 31, 2016. Total stockholders' equity was $23.83 million at December 31, 2017 compared to $24.14 million at September 30, 2017 and $23.07 million at December 31, 2016. Total stockholders' equity at December 31, 2017 included an accumulated other comprehensive loss of $243,000 compared to a loss of $175,000 and a loss of $426,000 at September 30, 2017 and December 31, 2016, respectively.
May concluded: "The Company has now generated three successive years of core earnings. Based on our overall financial strength and business development pipeline, we are well-positioned to continue participating in the economic strength of our market during 2018, creating long-term value for our shareholders. In the first quarter of 2018, we will be finalizing a registration statement with the Securities and Exchange Commission to raise up to $9.9 million in capital from current shareholders. The incremental capital will enable us to continue our current trajectory of significant organic growth and to explore other growth opportunities as they arise."
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 emerging businesses primarily in the Front Range of Colorado. At the core of Solera National Bank is welcoming, inclusive and respectful customer service, a focus on supporting a growing and diverse Colorado 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. ("Company") and its wholly-owned subsidiary, Solera National Bank ("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.
Contact:
Martin P. May, President & CEO (303) 937-6422
-or-
Melissa K. Larkin, EVP & CFO (303) 937-6423
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SOLERA NATIONAL BANCORP, INC.
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norweger1979
7年前
Solera National Bancorp Announces Third Quarter 2017 Financial Results
Continued Core Profitability, Significant Growth in Noninterest Bearing Deposits
Company Release - 10/26/2017 09:00
LAKEWOOD, Colo., Oct. 26, 2017 (GLOBE NEWSWIRE) -- Solera National Bancorp, Inc. (OTC: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 third quarter and the first nine months of 2017.
Highlights for the quarter ended September 30, 2017 include:
•Twelfth consecutive profitable quarter
•Noninterest-bearing deposit growth of $8.40 million, or 69.3%, versus linked-quarter
•Gross loan growth of $4.51 million, or 4.0%, versus linked-quarter
•Solid asset quality metrics
•Net interest margin of 3.11% increased 15 basis points from same period in 2016
•Efficiency ratio of 65.0% improved from 79.6% for the same period in 2016
•Tangible book value per share of $8.79 increased 12.7% from prior year
For the three months ended September 30, 2017, the Company reported net income of $296,000, or $0.11 per share, compared to net income of $292,000, or $0.11 per share, for the three months ended June 30, 2017, and $266,000, or $0.10 per share, for the three months ended September 30, 2016.
For the nine months ended September 30, 2017, Solera reported net income of $788,000, or $0.29 per share, compared with net income of $1.04 million, or $0.38 per share, for the nine months ended September 30, 2016. The first nine months of 2016 included a gain on loans sold and a gain on sale of securities of $125,000 and $157,000, respectively, compared to no asset sales during the first nine months of 2017. Additionally, the first nine months of 2017 results include income tax expense of $412,000 compared to no income tax in the first nine months of 2016.
Martin P. May, President and CEO, commented: “Overall, we are pleased with our solid operating performance in the third quarter and our outlook continues to be positive. Our team continues its relentless focus on growth, efficiency and profitability.”
Operational Highlights
Net interest income after provision for loan and lease losses was $1.24 million for the quarter ended September 30, 2017 compared to $1.15 million and $1.07 million in the quarters ended June 30, 2017 and September 30, 2016, respectively. Net interest income after provision for loan and lease losses for the first nine months of 2017 was $3.49 million, compared to $3.07 million in the first nine months of 2016. The Company recorded no provision for loan and lease losses during the first nine months of either 2017 or 2016.
The Company's net interest margin in third quarter 2017 was 3.11% compared to 3.06% in the linked-quarter and 2.96% in the third quarter 2016. For the nine months ended September 30, 2017, net interest margin of 3.08% increased nine basis points from 2.98% for the nine months ended September 30, 2016. The increase in net interest margin for both the third quarter and first nine months of 2017 versus the prior year is due primarily to growth in earning assets combined with a shift to higher yielding commercial loans from lower yielding investment securities. Cost of funds are essentially unchanged year over year.
Total noninterest income in third quarter 2017 was $55,000 compared to $58,000 in second quarter 2017 and $96,000 in third quarter 2016. The decrease versus third quarter 2016 was due to gains on sale of available-for-sale securities recorded in third quarter of 2016 of $36,000 compared to no realized net securities gains generated in the third quarter of 2017.
Total noninterest expense of $839,000 in the third quarter of 2017 increased from $780,000 in the linked-quarter but declined from $897,000 in the third quarter of 2016. The increase from the linked-quarter is primarily due to investment in our business development team and higher professional services fees. The decline from the third quarter of 2016 is principally due to legal fees incurred last year to defend a lawsuit brought by a former CEO of the Company.
In the third quarter of 2017, the Company recorded income tax expense of $156,000 compared to income tax expense of $138,000 in the second quarter of 2017 and no income tax in the third quarter of 2016. In the fourth quarter of 2016, the Company recorded a full reversal of the deferred tax asset valuation allowance after concluding that it was more likely than not that it will generate sufficient taxable income within the applicable carry-forward periods to realize its net deferred tax assets.
Balance Sheet Review and Asset Quality Strength
Total assets of $167.63 million at September 30, 2017 increased from $163.99 million at June 30, 2017 and $149.28 million at September 30, 2016. The increase versus the linked quarter and September 30, 2016 was primarily due to solid growth in gross loans.
Net loans, after allowance for loan and lease losses, were $114.67 million at September 30, 2017 compared to $110.16 million at June 30, 2017 and $98.48 million at September 30, 2016. Net loan growth in the third quarter of 2017 was driven by loan originations of $7.53 million partly offset by payoffs and pay downs totaling $3.02 million. Gross loans increased $16.16 million, or 16.1%, during the twelve months ended September 30, 2017 from organic net loan growth of $19.26 million partly offset by a $3.10 million net decrease in a purchased participation interest in a pool of rehabilitated student loans.
The allowance for loan and lease losses at September 30, 2017 of $1.59 million was effectively unchanged compared to June 30, 2017 and September 30, 2016. The allowance for loan and lease losses as a percentage of gross loans of 1.36% at September 30, 2017 declined from 1.58% at September 30, 2016 due to a reduction in criticized assets and the continued strengthening of the economic environment. No loan loss provisioning has been required over the past eleven quarters as the Bank’s credit quality metrics remain outstanding relative to banking industry norms.
Total investment securities available-for-sale were $33.40 million at September 30, 2017 compared to $35.22 million at June 30, 2017 and $36.32 million at September 30, 2016. Investment securities held-to-maturity of $4.90 million at September 30, 2017 increased by $401,000 compared to September 30, 2016.
Total deposits at September 30, 2017 were $134.78 million compared to $132.45 million at June 30, 2017 and $122.13 million at September 30, 2016. The Company’s focus on noninterest-bearing deposits continued to yield very positive results. Noninterest-bearing demand deposits increased $8.40 million versus the linked-quarter, or 69.3%, to $20.54 million at September 30, 2017, and 295.8%, or $15.35 million, from $5.19 million at September 30, 2016.
The Company continues to experience sound asset quality metrics. At September 30, 2017, the Company had no non-performing loans, non-performing assets or other real estate owned. Total criticized assets of $4.74 million at September 30, 2017, or 2.83% of total assets, declined from $5.90 million, or 3.60% of total assets, at June 30, 2017 and $6.52 million, or 4.36% of total assets, at September 30, 2016.
The Company had no past due commercial loans and $1.0 million of past due residential mortgage loans as of September 30, 2017, the majority of which was paid current in early October. Additionally, $3.49 million of the student loan participation pool were 30 days+ past due at September 30, 2017, of which $2.56 million were 90 days+ past due. The student loans are backed by an approximately 97.5% guarantee of the U.S. Treasury under the Higher Education Act of 1965. This guarantee includes all principal and interest so net credit losses in this portfolio are expected to be minimal. Additionally, the Bank purchased this pool at a discount resulting in the Bank’s maximum exposure to credit losses slightly less than 1%.
Capital Strength
The Company’s capital ratios continue to remain well in excess of the highest required regulatory benchmark levels. As of September 30, 2017, the Bank’s Tier 1 leverage ratio was 13.9%, Tier 1 risk-based capital was 18.0%, and total risk-based capital was 19.3%.
Tangible book value per share, including accumulated other comprehensive income, was $8.79 at September 30, 2017, compared to $8.66 at June 30, 2017 and $7.80 at September 30, 2016. Total stockholders' equity was $24.14 million at September 30, 2017 compared to $23.78 million at June 30, 2017 and $21.49 million at September 30, 2016. Total stockholders' equity at September 30, 2017 included an accumulated other comprehensive loss of $175,000 compared to a loss of $233,000 at June 30, 2017 and a gain of $89,000 at September 30, 2016. The fair value of the Bank's available-for-sale investment portfolio has declined from a year ago due to an increase in interest rates.
May concluded: "The Company has strong capital levels and is operating in a vibrant and healthy economic environment. Importantly, we are in the process of finalizing a registration statement with the Securities and Exchange Commission to raise additional capital from current shareholders. The incremental capital will enable us to explore growth opportunities such as acquiring other banks or businesses, establishing strategic partnerships, and investing in business development teams or new markets."
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 emerging businesses primarily in the Front Range of Colorado. At the core of Solera National Bank is welcoming, inclusive and respectful customer service, a focus on supporting a growing and diverse Colorado 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.
Contact:
Martin P. May, President & CEO (303) 937-6422
-or-
Melissa K. Larkin, EVP & CFO (303) 937-6423
http://ir.solerabankonline.com/CorporateProfile.aspx?iid=4121659
norweger1979
8年前
Solera National Bancorp Announces Second Quarter 2017 Financial Results
Solera National Bancorp Announces Second Quarter 2017 Financial Results
Continued Core Profitability, Solid Loan and Deposit Growth
LAKEWOOD, Colo., July 26, 2017 (GLOBE NEWSWIRE) -- Solera National Bancorp, Inc. (OTC: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 second quarter and first half of 2017.
Highlights for the quarter ended June 30, 2017 include:
-- Eleventh consecutive profitable quarter
-- Gross loan growth of $6.63 million, or 6.3%, versus linked-quarter
-- Noninterest-bearing deposit growth of $3.45 million, or 39.6%, versus
linked-quarter
-- Efficiency ratio of 64.5% improved from 72.6% in the prior quarter and 75.1% for the same period in 2016
-- Tangible book value per share of $8.66 increased 11.7% from prior year
-- A 5-Star rating assigned by BauerFinancial, Inc., the nation's leading bank rating firm
For the three months ended June 30, 2017, the Company reported net income of $292,000, or $0.11 per share, compared to net income of $200,000, or $0.07 per share, for the three months ended March 31, 2017, and $322,000, or $0.12 per share, for the three months ended June 30, 2016.
For the six months ended June 30, 2017, Solera reported net income of $492,000, or $0.18 per share, compared with net income of $776,000, or $0.28 per share, for the six months ended June 30, 2016. The first six months of 2016 included a gain on loans sold and a gain on sale of available securities of $125,000 and $121,000, respectively, compared to no activity in the first six months of 2017. Additionally, first half 2017 results include income tax expense of $256,000 compared to no income tax in the first half of 2016.
Martin P. May, President and CEO, commented: "We are pleased with the second quarter results in which we delivered our eleventh consecutive quarterly profit. Our focus on acquiring core deposit relationships has led to robust growth in non-interest bearing deposits while the investment in our business development team has led to strong growth in high-quality commercial loans. Importantly, we are gratified that BauerFinancial has recognized the bank's financial strength by assigning their highest rating."
"Further, we are delighted that shareholders elected Melissa K. Larkin to serve on the board of directors at our recent annual meeting. Melissa has been with the Company since 2007 and has served as our Chief Financial Officer since 2014. Her extensive industry experience and financial acumen will help the board fulfil its vision of having Solera National Bank become one of the premier, independent community banks in Colorado."
Operational Highlights
Net interest income after provision for loan and lease losses was $1.15 million for the quarter ended June 30, 2017 compared to $1.10 million and $957,000 in the quarters ended March 31, 2017 and June 30, 2016, respectively. Net interest income after provision for loan and lease losses for the six months of 2017 was $2.26 million, compared to $2.00 million in the six months of 2016. The Company recorded no provision for loan and lease losses in the first half of 2017 or first half of 2016.
The Company's net interest margin in second quarter 2017 was 3.06% compared to 3.04% in the linked-quarter and 2.87% in the second quarter 2016. For the six months ended June 30, 2017 net interest margin of 3.05% increased seven basis points from 2.98% for the first six months ended June 30, 2016. The increase in net interest margin for both the second quarter and first six months of 2017 versus the prior year is due primarily to a shift in earning assets to higher yielding commercial loans from lower yielding investment securities. Cost of funds are essentially unchanged year over year.
Total noninterest income in second quarter 2017 was $58,000 compared to $55,000 in first quarter 2017 and $126,000 in second quarter 2016. The decrease versus second quarter 2016 was due to gains on sale of available-for-sale securities recorded in second quarter of 2016 of $70,000. There were no realized net securities gains generated in the second quarter of 2017.
The Company continues to prudently manage expenses. Total noninterest expense of $780,000 in the second quarter of 2017 compared favorably with $841,000 in the linked-quarter and represented a slight increase from $761,000 in the second quarter of 2016.
In the second quarter of 2017, the Company recorded income tax expense of $138,000 compared to income tax expense of $118,000 in the first quarter 2017 and no income tax in the second quarter of 2016. In the fourth quarter of 2016, the Company recorded a full reversal of the deferred tax asset valuation allowance after concluding that it was more likely than not that it will generate sufficient taxable income within the applicable carry-forward periods to realize its net deferred tax assets.
Balance Sheet Review and Asset Quality Strength
Total assets of $163.99 million at June 30, 2017 increased from $157.09 million at March 31, 2017 and $142.84 million at June 30, 2016. The increase versus the linked quarter and June 30, 2016 was primarily due to solid growth in gross loans.
Net loans, after allowance for loan and lease losses, were $110.16 million at June 30, 2017 compared to $103.51 million at March 31, 2017 and $90.97 million at June 30, 2016. Net loan growth in the second quarter of 2017 was driven by loan originations of $9.81 million partly offset by payoffs and pay downs totaling $3.18 million. Net loans increased $19.19 million, or 21%, during the twelve months ended June 30, 2017 from organic net loan growth of $17.18 million coupled with a $2.01 million net increase in a purchased participation interest in a pool of rehabilitated student loans.
The allowance for loan and lease losses at June 30, 2017 of $1.59 million was essentially unchanged compared to March 31, 2017 and June 30, 2016. The allowance for loan and lease losses as a percentage of gross loans of 1.42% at June 30, 2017 declined from 1.70% at June 30, 2016 due to a reduction in criticized assets along with growth in a pool of rehabilitated student loans which come with minimal risk of loss given a U.S. government guarantee. No loan loss provisioning has been required over the past ten quarters as credit quality metrics remain outstanding relative to banking industry norms.
Total investment securities available-for-sale were $35.22 million at June 30, 2017 compared to $34.65 million at March 31, 2017 and $36.16 million at June 30, 2016. Investment securities held-to-maturity of $4.90 million at June 30, 2017 increased by $400,000 compared to June 30, 2016.
Total deposits at June 30, 2017 were $132.45 million compared to $128.04 million at March 31, 2017 and $117.02 million at June 30, 2016. The Company's focus on noninterest-bearing deposits continued to yield positive results. Noninterest-bearing demand deposits increased $3.45 million versus the linked-quarter, or 39.6%, to $12.13 million at June 30, 2017, and almost tripled from $4.16 million at June 30, 2016.
The Company continues to experience sound asset quality. At June 30, 2017, the Company had no non-performing loans, non-performing assets or other real estate owned. Total criticized assets of $5.90 million at June 30, 2017, or 3.60% of total assets, declined from $6.12 million, or 3.90% of total assets, at March 31, 2017 and $6.19 million, or 4.33% of total assets, at June 30, 2016.
The Company had no past due commercial loans and $438,000 of past due residential mortgage loans as of June 30, 2017. However, $3.73 million of the student loan participation pool were 30 days+ past due at June 30, 2017, of which $2.31 million were 90 days+ past due. The student loans are backed by an approximately 97.5% guarantee of the U.S. Treasury under the Higher Education Act of 1965. This guarantee includes all principal and interest so net credit losses in this portfolio are expected to be minimal. Additionally, the Bank purchased this pool at a discount resulting in the Bank's maximum exposure to credit losses slightly less than 1%.
Capital Strength
The Company's capital ratios continue to remain well in excess of the highest required regulatory benchmark levels. As of June 30, 2017, the Bank's Tier 1 leverage ratio was 14.2%, Tier 1 risk-based capital was 18.5%, and total risk-based capital was 19.7%.
Tangible book value per share, including accumulated other comprehensive income, was $8.66 at June 30, 2017, compared to $8.52 at March 31, 2017 and $7.75 at June 30, 2016. Total stockholders' equity was $23.78 million at June 30, 2017 compared to $23.40 million at March 31, 2017 and $21.37 million at June 30, 2016. Total stockholders' equity at June 30, 2017 included an accumulated other comprehensive loss of $233,000 compared to a loss of $308,000 at March 31, 2017 and a gain of $248,000 at June 30, 2016. The fair value of the Bank's available-for-sale investment portfolio has declined from a year ago due to an increase in interest rates.
May concluded: "The Company has strong capital and liquidity levels, solid asset quality metrics, and is operating in a vibrant and healthy economic environment. We expect to leverage a portion of our excess capital in the third quarter of 2017 through an additional $8.0 million investment in a pool of rehabilitated student loans. Additionally, the Company continues to take steps to raise additional capital through a proposed rights offering to current shareholders. The incremental capital will enable us to explore additional growth opportunities including acquiring other banks or businesses, establishing strategic partnerships, and investing in business development teams or new markets."
About Solera National Bancorp, Inc.
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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 emerging businesses primarily in the Front Range of Colorado. At the core of Solera National Bank is welcoming, inclusive and respectful customer service, a focus on supporting a growing and diverse Colorado 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.
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SOLERA NATIONAL BANCORP, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited)
($000s) 6/30/2017 3/31/2017 12/31/2016 9/30/2016 6/30/2016
---------- ---------- ---------- ---------- ----------
ASSETS
Cash and due from
banks $ 1,097 $ 2,126 $ 719 $ 825 $ 678
Federal funds sold 210 185 80 -- 1,755
Interest-bearing
deposits with banks 1,261 261 261 261 261
Investment
securities,
available-for-sale 35,222 34,645 36,133 36,324 36,159
Investment
securities,
held-to-maturity 4,900 4,899 4,500 4,500 4,500
FHLB and Federal
Reserve Bank stocks,
at cost 987 861 879 1,027 853
Gross loans 111,990 105,363 105,243 100,336 92,749
Net deferred
(fees)/expenses (246) (249) (260) (270) (201)
Allowance for loan
and lease losses (1,588) (1,601) (1,599) (1,584) (1,577)
Net loans 110,156 103,513 103,384 98,482 90,971
Premises and
equipment, net 1,783 1,803 1,831 1,861 1,884
Accrued interest
receivable 794 816 798 768 616
Bank-owned life
insurance 4,554 4,525 4,495 4,464 4,433
Other assets 3,025 3,460 3,011 765 731
TOTAL ASSETS $ 163,989 $ 157,094 $ 156,091 $ 149,277 $ 142,841
LIABILITIES AND STOCKHOLDERS' EQUITY
Noninterest-bearing
demand deposits 12,134 8,689 5,941 5,189 4,156
Interest-bearing
demand deposits 7,855 8,016 8,374 6,997 7,913
Savings and money
market deposits 49,434 43,473 42,569 38,558 36,798
Time deposits 63,031 67,865 69,441 71,382 68,156
Total deposits 132,454 128,043 126,325 122,126 117,023
Accrued interest
payable 151 131 103 144 127
Short-term FHLB
borrowings 4,029 1,466 2,415 1,125 --
Long-term FHLB
borrowings 3,400 3,400 3,400 4,000 4,000
Accounts payable and
other liabilities 178 654 776 390 317
TOTAL LIABILITIES 140,212 133,694 133,019 127,785 121,467
Common stock 27 27 27 27 27
Additional paid-in
capital 27,190 27,180 27,170 27,160 27,149
Accumulated deficit (3,051) (3,343) (3,543) (5,628) (5,894)
Accumulated other
comprehensive gain
(loss) (233) (308) (426) 89 248
Treasury stock, at
cost (156) (156) (156) (156) (156)
TOTAL STOCKHOLDERS'
EQUITY 23,777 23,400 23,072 21,492 21,374
TOTAL LIABILITIES AND
STOCKHOLDERS'
EQUITY $ 163,989 $ 157,094 $ 156,091 $ 149,277 $ 142,841
SOLERA NATIONAL BANCORP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
Three Months Ended Six Months Ended
($000s, except per
share data) 6/30/2017 3/31/2017 12/31/2016 9/30/2016 6/30/2016 6/30/2017 6/30/2016
Interest and
dividend income
Interest and fees on
loans $ 1,239 $ 1,168 $ 1,175 $ 1,144 $ 1,011 $ 2,407 $ 2,065
Investment
securities 249 256 254 242 249 505 541
Dividends on bank
stocks 11 11 12 12 11 22 21
Other 7 3 1 2 4 10 8
Total interest
income 1,506 1,438 1,442 1,400 1,275 2,944 2,635
Interest expense
Deposits 340 322 320 315 298 662 592
FHLB borrowings 14 12 15 18 20 26 40
Total interest
expense 354 334 335 333 318 688 632
Net interest
income 1,152 1,104 1,107 1,067 957 2,256 2,003
Provision for loan
and lease losses -- -- -- -- -- -- --
Net interest
income after
provision for
loan and lease
losses 1,152 1,104 1,107 1,067 957 2,256 2,003
Noninterest income
Customer service and
other fees 26 23 26 28 24 49 48
Other income 32 32 32 32 32 64 74
Gain on loans sold -- -- -- -- -- -- 125
Gain on sale of
available-for-sale
securities -- -- -- 36 70 -- 121
Total
noninterest
income 58 55 58 96 126 113 368
Noninterest expense
Employee
compensation and
benefits 447 486 425 410 376 933 782
Occupancy 42 49 53 59 56 91 121
Professional fees 26 39 49 129 31 65 102
Other general and
administrative 265 267 762 299 298 532 590
Total
noninterest
expense 780 841 1,289 897 761 1,621 1,595
Net Income/(Loss)
Before Taxes $ 430 $ 318 $ (124) $ 266 $ 322 $ 748 $ 776
Income Tax
(Expense)/Benefit $ (138) $ (118) $ 2,209 $ - $ - $ (256) $ -
Net Income $ 292 $ 200 $ 2,085 $ 266 $ 322 $ 492 $ 776
Income Per Share $ 0.11 $ 0.07 $ 0.77 $ 0.10 $ 0.12 $ 0.18 $ 0.28
Tangible Book Value
Per Share $ 8.66 $ 8.52 $ 8.39 $ 7.80 $ 7.75 $ 8.66 $ 7.75
Net Interest Margin 3.06% 3.04% 3.04% 2.96% 2.87% 3.05% 2.98%
Efficiency Ratio 64.46% 72.56% 110.64% 79.59% 75.12% 68.43% 70.89%
Return on Average
Assets 0.73% 0.51% 5.46% 0.73% 0.91% 0.63% 1.09%
Return on Average
Equity 4.95% 3.44% 37.43% 4.96% 6.11% 4.19% 7.58%
Asset Quality:
-------------------
Non-performing
loans to gross
loans --% --% --% --% --%
Non-performing
assets to total
assets --% --% --% --% --%
Allowance for loan
losses to gross
loans 1.42% 1.52% 1.52% 1.58% 1.70%
Criticized
loans/assets:
Special mention $ 1,176 $ 1,210 $ 1,164 $ 1,984 $ 1,967
Substandard:
Accruing 4,128 4,320 4,364 3,935 3,627
Substandard:
Nonaccrual -- -- -- -- --
Doubtful -- -- -- -- --
Total criticized
loans $ 5,304 $ 5,530 $ 5,528 $ 5,919 $ 5,594
Other real estate
owned -- -- -- -- --
Investment
securities 593 594 595 596 597
Total criticized
(MORE TO FOLLOW) Dow Jones Newswires
July 26, 2017 09:00 ET (13:00 GMT)
assets $ 5,897 $ 6,124 $ 6,123 $ 6,515 $ 6,191
Criticized assets to
total assets 3.60% 3.90% 3.92% 4.36% 4.33%
Selected Financial Ratios: (Solera National Bank Only)
Tier 1 leverage
ratio 14.2% 13.7% 14.0% 13.2% 13.8%
Tier 1 risk-based
capital ratio 18.5% 18.7% 18.7% 19.1% 18.5%
Total risk-based
capital ratio 19.7% 19.9% 20.0% 20.4% 19.8%
Contact:
Martin P. May, President & CEO (303) 937-6422
-or-
Melissa K. Larkin, EVP & CFO (303) 937-6423
(END) Dow Jones Newswires
July 26, 2017 09:00 ET (13:00 GMT)
Solera National Bancorp Announces Second Quarter -3-
assets $ 5,897 $ 6,124 $ 6,123 $ 6,515 $ 6,191
Criticized assets to
total assets 3.60% 3.90% 3.92% 4.36% 4.33%
Selected Financial Ratios: (Solera National Bank Only)
Tier 1 leverage
ratio 14.2% 13.7% 14.0% 13.2% 13.8%
Tier 1 risk-based
capital ratio 18.5% 18.7% 18.7% 19.1% 18.5%
Total risk-based
capital ratio 19.7% 19.9% 20.0% 20.4% 19.8%
Contact:
Martin P. May, President & CEO (303) 937-6422
-or-
Melissa K. Larkin, EVP & CFO (303) 937-6423
(END) Dow Jones Newswires
July 26, 2017 09:00 ET (13:00 GMT)
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