Solera National Bancorp Earns $242,000, Or $0.09 Per Share, In 2011

Solera National Bancorp, Inc. (OTCBB:SLRK), the holding company for Solera National Bank, today reported it earned $242,000, or $0.09 per share in 2011, compared to $134,000, or $0.05 per share a year ago. Improving asset quality and a solid balance sheet contributed to profitability. Net Income for the fourth quarter of 2011, was $166,000, or $0.07 per share, compared to $159,000, or $0.06 per share, in the preceding quarter and $416,000, or $0.16 per share in the fourth quarter a year ago.

“We are encouraged by our year end operating results reflecting our solid balance sheet, ample liquidity and improving asset quality,” said Douglas Crichfield, President and Chief Executive Officer. “With strong capital and solid reserves, we will continue to focus on growing our franchise.

“We recently launched a residential mortgage program for well-qualified borrowers,” said Crichfield. “The program fills a gap in the market for larger home loans which do not conform to U.S. government-sponsored agency underwriting standards. Generally, they are large, fixed-rate term loans, with lower loan-to-value ratios that mature in three to seven years and amortize over a 25 year period.

“In addition, we will be ramping up our SBA programs for the growing small businesses in our communities,” added Crichfield. “The SBA’s 504 program provides long-term, fixed-rate financing to acquire major fixed assets for expansion or modernization; and the SBA 7(a) loan program will provide funding for working capital needs, inventory financing and other operating purposes.”

Financial Highlights (at or for the quarter ended December 31, 2011)

• 2011 net income increased 81% to $242,000 from $134,000 in 2010;
• The Bank’s capital ratios continue to significantly exceed regulatory requirements for a well-capitalized financial institution with total risk-based capital at 20.5%;
• Total assets increased 4%, to $145.4 million, from a year ago;
• Total deposits increased 7% year-over-year to $119.0 million, with noninterest-bearing demand deposits growing 88% from a year ago;
• Tangible book value per share, excluding unrealized gains on securities, improved to $7.26 up from $7.19 the preceding quarter and $7.10 a year earlier;
• Solera’s tangible common equity ratio, excluding unrealized gains on securities, was 12.7% at year-end 2011.

Balance Sheet and Credit Quality

Solera National Bancorp’s total assets increased 3% to $145.4 million at December 31, 2011, from $140.7 million at September 30, 2011, and grew 4% from $140.1 million at December 31, 2010.

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