- Solera National Bancorp (SLRK, Financial) reported a first-quarter net income of $4.6 million, a 54% increase from Q1 2024.
- The bank's net interest margin improved by 53 basis points, reaching 3.93%.
- Efficiency ratio improved to 44.31%, showing significant operational enhancements.
Solera National Bancorp, Inc. (OTC PINK: SLRK), the holding company for Solera National Bank, reported robust financial results for the first quarter of 2025. The bank achieved a net income of $4.6 million, or $1.08 per share, which marks a 54% increase compared to the first quarter of 2024.
The bank recorded its third-best quarter with pre-tax and pre-provision income reaching $6.4 million, a 19% year-over-year growth. A significant highlight of the quarter is the improvement in the net interest margin, which increased by 53 basis points to 3.93%.
Additionally, the cost of funds decreased to 2.49%, enhancing the bank's profitability. Solera National Bancorp also reported a return on assets of 1.62% and an impressive return on equity of 20.64%.
The efficiency ratio improved to 44.31%, a substantial enhancement from the previous year, reflecting the bank's focus on operational efficiency. Moreover, Solera National Bancorp achieved a Tier 1 capital ratio of 10.4%, exceeding its target of 10%, which positions it well to leverage high treasury yields to boost investment returns.
