Total deposits are now over $1 Billion, up 21% from 12/31/2022.

Year-to-date net income of 13.1 million is on pace to equal 2022.

LAKEWOOD, CO / ACCESSWIRE / October 19, 2023 / 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 and nine months ended September 30, 2023. For the third quarter of 2023, net income was $4.9 million ($1.11 per share) and $13.1 million year to date.

3Q23 Financial Highlights

(Comparison to 3Q22 unless otherwise noted)

• The Company had a pre-tax, pre-provision income of $5.9 million in the third quarter of 2023 compared to $5.2 million from Q2 2023.
• Net interest income of $8.5 million for the third quarter of 2023 represents a 15% increase over the $7.4 million.
• Our cost of funds has increased 188 BPS from Q3 2022.
• Return on equity was 29.40%.
• Total criticized loans have decreased by 40 bps. Non-performing loans 0.87%.
• Efficiency ratio stayed low at 39.25%.
• Total non-interest expense decreased by $849 thousand or 18%.

Michael Quagliano, Executive Chairman of the Board, commented: "Wow, in this high-rate environment, we made 1.11 EPS and over 10% return in one quarter for the shareholders. I/we continue to work relentlessly for the shareholders. If you have a new metric to judge us on, let me know what it is, and we will achieve that, too!"

Steve Snailum, COO, commented: "Solera continues to demonstrate strength and resilience in the face of challenges. The foresight and strategic thinking of bank leadership has enabled the bank to thrive in both rates up and rates down economic cycles, and furthermore, the ability of the team to execute the strategy remains a pillar of success for Solera. As Thomas Edison said, "Genius is one percent inspiration, ninety-nine percent perspiration." Solera is never afraid of hard work, and we are committed to providing exceptional service and results to our clients and shareholders ."

Kreighton Reed, EVP, commented: "Non-interest bearing deposits have been and will remain a main priority for Solera. We will be expanding our product set to expand our non-interest bearing growth. Our non-interest bearing deposits have shown strong resilience to this high rate environment."

Tim Pester, the Controller, commented: " We are excited to report another outstanding quarter, as our bank's strong earnings performance in this elevated rate environment reflects our unwavering commitment to financial excellence and our ability to navigate dynamic economic landscapes with precision and resilience."

Jay Hansen, CFO, commented: "We slowed down our growth mainly because of a core system conversion and to let our capital numbers catch up, and we have significantly reduced our FHLB borrowings & moved to more core deposits. Higher for longer appears to be the Fed position, but we are ready for markets to go up or down. I am very proud of our team and the extra hours they have put in during our exhausting conversion. Our key ratios are some of the best for less than $2 Billion banks, especially in Colorado."

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: Jay Hansen, CFO (303) 209-8600

FINANCIAL TABLES FOLLOW

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

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

SOURCE: Solera National Bank