Solera National Bancorp Earnings Surge More Than Six-Fold To $620,000 In First Half Of 2013; Second Quarter Profits More Than Double To $439,000
LAKEWOOD, Colo., July 26, 2013 (GLOBE NEWSWIRE) -- Solera National Bancorp, Inc. (OTCQB:SLRK), the holding company for Solera National Bank, today reported its most profitable quarter in its history fueled by solid loan demand, higher gains on loans sold and improving credit quality. Net income increased 143% to $439,000, or $0.17 per share, for the second quarter of 2013, compared to $181,000, or $0.07 per share, for the preceding quarter, and grew 230% from $133,000, or $0.05 per share, for the second quarter a year ago. Year-to-date, Solera earned $620,000, or $0.24 per share, up more than six-fold compared to $94,000, or $0.04 per share, in the first six months of 2012.
"Second quarter earnings were the most profitable quarter in our history and marks another significant step in strengthening our franchise," said Douglas Crichfield, President and Chief Executive Officer. "Loan originations have been steady, and we continue to position our residential mortgage division for growth. Although we may see a marginal slowdown in residential mortgage refinancing activity, due to the recent rise in interest rates, continued improvement in the housing market should provide opportunities for increased volume and is expected to offset some of the decline in refinance activity. With building permits, sales volumes and average home prices all climbing across Colorado, we remain confident our mortgage bankers will continue to contribute to earnings."
"We recently received approval from the Office of the Comptroller of the Currency to open a full-service branch in our Boulder loan production office," added Crichfield. "We are delighted to be expanding in one of Colorado's most vibrant cities. We expect the branch to open in the fourth quarter of 2013." Boulder is located approximately 30 miles northwest of Denver and is the home of the University of Colorado's main campus.Second Quarter 2013 Highlights (at or for the period ended June 30, 2013, except as noted):
- Earnings per share were a record $0.17 in 2Q13, compared to $0.07 in 1Q13, and $0.05 in 2Q12.
- Total revenues (which includes net interest income plus total noninterest income) increased 41% to $3.8 million in 2Q13, compared to $2.7 million in 1Q13 and grew over 200% from $1.3 million in 2Q12.
- Net interest income was $1.1 million for both 2Q13 and 1Q13, a slight improvement from $1.0 million in 2Q12.
- Fueled by gains on sale of mortgage loans, noninterest income totaled $2.7 million in 2Q13, compared to $1.7 million in 1Q13 and $230,000 in 2Q12.
- Gross loans increased 12%, or $7.3 million, to $65.8 million from the like quarter a year ago, and grew 2%, or $1.6 million, from the previous quarter.
- In June 2013, Solera National Bank completed the acquisition of customer deposits from Liberty Savings Bank, assuming approximately 500 new accounts and $6 million in core deposits from Liberty's Lakewood, CO branch.
- Solera National Bank received Preferred Lender status from the Small Business Administration in the second quarter 2013.
- The Bank's capital ratios significantly exceed regulatory requirements for a well-capitalized financial institution with total risk-based capital at 16.8%.
- Tangible book value per share improved to $7.67 compared to $7.48 at March 31, 2013.
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