LAKEWOOD, CO / ACCESSWIRE / February 3, 2022 / 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 twelve months ended December 31, 2021.

Highlights for the quarter and twelve-months ended December 31, 2021 include:

• Pre-tax, pre-provision income grew 66% year-over-year to $16.2 million for the twelve months ended December 31, 2021, compared to $9.8 million for the twelve months ended December 31, 2020.
• Net income increased 89% year over year to $11.1 million for the twelve months ended December 31, 2021, compared to $5.9 million for the year ended December 31, 2020.
• Cost of funds remained low for the year ended December 2021 at 15 basis points for the fourth quarter of 2021 and 17 basis points year-to-date 2021; this is a 47%, or 15 basis point, improvement over the 32 basis points cost of funds for the twelve-months ended December 31, 2021.
• The Company's efficiency ratio decreased to 35.66% for the year ended December 2021 compared to 41.16% for the year ended December 31, 2020.
• Traditional gross loans were at $419.6 million for the year ended December 31, 2021, a 55% increase from $271.1 million for the twelve-months ended December 31, 2020.
• Noninterest-bearing deposits rose 19%, or $73.9 million, quarter-over-quarter and $228.9 million, or 97%, year-over-year ending December 31, 2021 at $464.1 million.
• Asset quality remains strong with criticized assets at 4.32% of total assets and nonperforming assets at 1.02% of total assets as of December 31, 2021.
• Return on average assets increased by 41 basis points to 2.04% for the year ended December 2021 compared to 1.63% for the year ended December 2020.
• Return on average equity increased to 20.84% as compared to 13.51% as of December 2020.

For the three months ended December 31, 2021, the Company reported net income of $2.6 million, or $0.61 per share, compared to $3.4 million, or $0.79 per share, for the third quarter of 2021 and $1.9 million, or $0.43 per share, for the three months ended December 31, 2020. The year ended December 31, 2021 with net income of $11.1 million, or $2.58 per share, compared to $5.9 million, or $1.42 per share, for the year ended December 31, 2020.

Cheri Walz, CFO, commented: "We ended the year with the same momentum as our growth in the third quarter. Our fourth-quarter results were not only driven by an increase in loans but also from adding record levels of noninterest-bearing deposits. Our Bank is very focused on maintaining strong asset quality and we will continue to do so as we grow. Additionally, our efficient operations helped us to control overhead expenses which also contributes to the favorable results we continue to see."

Total assets ended at $651.2 million for the twelve months ended December 31, 2021, an increase of 50% compared to total assets of $435.8 million as of December 31, 2020. Total deposits were $587.9 million at December 31, 2021, an increase of 54% compared to total deposits of $382.1 million at December 31, 2020. Net loans were $462.2 million at December 31, 2021, an increase of 37% from net loans of $337.7 million at December 31, 2020. After adjusting for Paycheck Protection Program Loans, net loans were $412.8 million at December 31, 2021, an increase of 55% from $265.5 million at December 31, 2020. At December 31, 2021, the Bank had $49.4 million in Paycheck Protection Program loans, net, as compared to $72.1 million at December 31, 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 next 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.

For More Information Contact: February 3, 2022

Cheri Walz, Chief Financial Officer
720-764-9090
cwalz@solerabank.com

SOLERA NATIONAL BANCORP, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited)

SOLERA NATIONAL BANCORP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

SOURCE: Solera National Bancorp, Inc.