[AskMuncher]

$SLRK Solera National Bancorp Names Cheri Walz CFO
Press Release | 10/28/2021
LAKEWOOD, CO / ACCESSWIRE / October 28, 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 announced that Cheri Walz has joined the Company and the Bank as Chief Financial Officer.

CEO Scott Wilson stated: "We are delighted to welcome Cheri to our executive team. Cheri is a first-class talent with results-driven leadership who brings a wealth of knowledge and enthusiasm to Solera. Her experience in building a thriving team culture, coupled with her financial and banking acumen, make her a perfect fit for our organization.

Ms. Walz has served in senior executive roles at Midwest Independent Bank, Town & Country Bank, and most recently at Providence Bank. She has more than 25 years of experience in banking and is active in various banking and financial professional organizations. Ms. Walz holds a certificate from the Stonier Graduate School of Banking and Wharton Leadership Program at the University of Pennsylvania. Ms. Walz is a certified public accountant (CPA), certified treasury professional (CTP) and holds a Bachelor's of Science in Accounting from Lincoln University.

"I am very excited to be joining the Solera team. I believe Solera has an impressive business model with a talented management team that uniquely positions Solera to grow and compete with banks of all sizes. I look forward to building upon Solera's current successes and focusing on delivering value for our clients and shareholders," said Ms. Walz.

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/

Cautions Concerning Forward-Looking Statements:

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:
Scott Wilson
CEO
[phone]

SOURCE: Solera National Bancorp, Inc.



View source version on accesswire.com:
https://www.accesswire.com/670278/Solera-National-Bancorp-Names-Cheri-Walz-CFO

[AskMuncher]

$SLRK Solera National Bancorp Names Cheri Walz CFO
Press Release | 10/28/2021
LAKEWOOD, CO / ACCESSWIRE / October 28, 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 announced that Cheri Walz has joined the Company and the Bank as Chief Financial Officer.

CEO Scott Wilson stated: "We are delighted to welcome Cheri to our executive team. Cheri is a first-class talent with results-driven leadership who brings a wealth of knowledge and enthusiasm to Solera. Her experience in building a thriving team culture, coupled with her financial and banking acumen, make her a perfect fit for our organization.

Ms. Walz has served in senior executive roles at Midwest Independent Bank, Town & Country Bank, and most recently at Providence Bank. She has more than 25 years of experience in banking and is active in various banking and financial professional organizations. Ms. Walz holds a certificate from the Stonier Graduate School of Banking and Wharton Leadership Program at the University of Pennsylvania. Ms. Walz is a certified public accountant (CPA), certified treasury professional (CTP) and holds a Bachelor's of Science in Accounting from Lincoln University.

"I am very excited to be joining the Solera team. I believe Solera has an impressive business model with a talented management team that uniquely positions Solera to grow and compete with banks of all sizes. I look forward to building upon Solera's current successes and focusing on delivering value for our clients and shareholders," said Ms. Walz.

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/

Cautions Concerning Forward-Looking Statements:

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:
Scott Wilson
CEO
[phone]

SOURCE: Solera National Bancorp, Inc.



View source version on accesswire.com:
https://www.accesswire.com/670278/Solera-National-Bancorp-Names-Cheri-Walz-CFO

[AskMuncher]

$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
[e-mail]

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]

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]

Press Release

https://ir.solerabankonline.com/news-and-market-data/press-releases/news-details/2021/Departure-of-Directors-or-Certain-Officers-Appointment-of-Certain-Officers/default.aspx

Departure of Directors or Certain Officers; Appointment of Certain Officers
Company Release - 7/23/2021 5:00 PM ET
LAKEWOOD, CO / ACCESSWIRE / July 23, 2021 / On July 22, 2021, Solera National Bancorp, Inc. (the "Company") and Solera National Bank (the 'Bank'), a national bank and subsidiary of the Company terminated the employment of Martin P. May as President and Chief Executive Officer of the Company and Bank.

On July 22, 2021, Messrs. Philip J. Randell and Richard M. Thorne members of the Board of Directors of both the Company and the Bank indicated that they will not stand for reelection as directors of the Company upon the expiration of their terms at the Company's 2021 Annual Meeting of Shareholders to be held on September 16, 2021. Additionally, Mr. May resigned from the Board of Directors of both the Company and the Bank on July 22, 2021.

On July 22, 2021, the Bank appointed Mr. Kreighton Reed as interim President and Chief Executive Officer of the Bank. Mr. Reed joined the Bank in 2016 and was most recently the Bank's Executive Vice President of Business Development. Mr. Reed stated, "Mr. May will be missed. He is known for how easy he is to approach, his kindness and thoughtfulness, and most impressively his professionalism and strong character. During May's tenure at the Bank, it has more than doubled in size not only in the size of the Bank, but also the number of employees. May's vision transformed Solera from a sleepy, local community bank to a bank with national presence and customers. It was his vision to narrow our focus to just a few products that has enabled us to be recognized as a leader in the banking industry. The impact he has had on this bank is profound and needs to be applauded."

The Company thanks Messrs. May, Randell and Thorne for their service and commitment to the Company.

[norweger1979]

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 [phone] and Melissa K. Larkin, EVP & CFO [phone]

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[norweger1979]

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