Solera National Bancorp Reports Second Quarter, First Half 2014 Financial Results Reflecting Solid Asset Quality, Strong Capital

Solera National Bancorp Reports Second Quarter, First Half 2014 Financial
Results Reflecting Solid Asset Quality, Strong Capital Ratios, and Loan Growth

LAKEWOOD, Colo., Aug. 6, 2014 (GLOBE NEWSWIRE) -- Solera National Bancorp,
Inc. (OTCQB:SLRK), the holding company for Solera National Bank, today
reported financial results for the three and six months ended June 30, 2014.
For the three months ended June 30, 2014, the Company reported a net loss of
$23,000 or $(0.01) per share compared to net income of $439,000 or $0.17 per
share for the three months ended June 30, 2013. For the six months ended June
30, 2014, the Company reported a net loss of $392,000 or $(0.15) per share
compared to net income of $620,000 or $0.24 per share for the six months ended
June 30, 2013.

Robert J. Fenton, newly appointed President and CEO, commented: "Our Company
enters the second half of the year with solid asset quality, strong capital
ratios, a portfolio of loans that has grown compared to a year ago, and a
stable deposit base to support our lending activity. We recently announced the
addition of two prominent Denver-based individuals to our board of directors
and are encouraged by the new energy that has been brought to the board."

Fenton continued: "The Company has a new board of directors and is in the
process of rebuilding the management team. During this period of transition in
Solera's leadership, our entire team has performed admirably seeking out new
business opportunities, building client relationships, and providing the
consistently high level of service for which Solera National Bank is known.

"We believe the Company is positioned to grow and operate with greater
efficiency. However, the third quarter will have challenges due to sharply
reduced noninterest income as all of our residential mortgage loan officers,
and the majority of related operations staff, tendered their resignations in
July to join other organizations. The new Board is committed to this line of
business and is exploring strategic opportunities to re-enter this business in
a meaningful way. In the interim, we will stay focused on our traditional
strength as a commercial bank and operate with a very lean and efficient
structure. This will include de-registering from being an SEC reporting
company, which is expected to save the Company between $100,000 and $150,000
annually."

Chief Financial Officer Melissa Larkin noted: "It is important for our
shareholders to know that although we will be de-registering as an SEC
reporting company, we will still have transparent financial reporting through
publication of quarterly earnings releases and annual audited financial
statements. Importantly, there will still be liquidity in our stock as we
remain traded over-the-counter and our current market makers continue to make
a market for our stock."

Review of Operations

Interest and fees on loans were $1.10 million in second quarter 2014 compared
to $868,000 in second quarter 2013, primarily reflecting an increased level of
net loans.For the six months of 2014, interest and fees on loans was $2.22
million compared to $1.66 million for the six months of 2013. Total interest
income was $1.62 million for the three months ended June 30, 2014 compared to
$1.42 million for the three months ended June 30, 2013. For the six months of
2014, total interest income increased to $3.23 million compared to $2.77
million for the six months of 2013.

Total interest expense was $314,000 in second quarter 2014 compared to
$297,000 in second quarter 2013.For the six months ended June 30, 2014, total
interest expense was $623,000 compared to $593,000 for the six months ended
June 30, 2013.In second quarter 2014, the Company's net interest income after
provision for loan and lease losses increased to $1.15 million compared to
$1.12 million in second quarter 2013.For the six months ended June 30, 2014,
net interest income after provision for loan and lease losses rose to $2.45
million compared to $2.17 million for the six months ended June 30, 2013.

Solera's net interest margin was 3.27% in second quarter 2014, up from 2.82%
in second quarter 2013, and relatively stable compared to 3.37% in first
quarter 2014.Fenton said the Company remains focused on building earning
assets while diligently managing expenses.

Total noninterest income in second quarter 2014 was $1.67 million compared to
$2.69 million in second quarter 2013, primarily reflecting a sharp decline in
gain on loans sold as residential mortgage refinancing activity slowed.This
trend can also be seen in the six months results where noninterest income in
2014 was $1.7 million less, at $2.7 million, than the $4.4 million for the
same period in 2013.

Total noninterest expense in second quarter 2014 declined to $2.84 million
compared to $3.38 million in second quarter 2013, primarily reflecting lower
employee-related expenses. A portion of the decline is related to reduced
residential mortgage volume and therefore lower commission expense. The
remainder is due to the Company's focus on operating with a leaner, more
efficient structure. These cost savings were partially offset by nonrecurring
charges of approximately $260,000 related to write-downs on the Bank's two
OREO properties that are now under contract. For the six months ended June 30,
2014, total noninterest expense was $5.52 million compared to $5.91 million
for the six months ended June 30, 2013.

"Expenses related to the Company's proxy activities created a considerable
drag on earnings in the first half of the year," explained Fenton. "With this
behind us, we expect a reduced level of noninterest expense over the balance
of the year."

Balance Sheet Review, Credit Quality and Shareholder Value

The Company demonstrated year-over-year loan growth as net loans, after
allowance for loan and lease losses, increased to $82.20 million at June 30,
2014 compared to $64.81 million at June 30, 2013.The Company's allowance for
loan and lease losses was $1.30 million, or 1.56% of gross loans, at June 30,
2014 compared to $1.09 million, or 1.65% of gross loans, at June 30, 2013.

Total deposits at June 30, 2014 were $128.09 million compared to $124.74
million at June 30, 2013.Total assets were $167.97 million at June 30, 2014
compared to $170.23 million at June 30, 2013, primarily reflecting the
increase in net loans, partially offset by a decrease in investment securities
as the Company funded new loans originated through the proceeds generated from
the sale of securities.This strategy had the benefit of reducing the
Company's interest rate risk within the available-for-sale investment
portfolio.

The Bank's asset and loan quality measurements continued to demonstrate
soundness and stability. With one non-performing loan at June 30, 2014, the
ratio of non-performing loans to gross loans was 0.19%, and non-performing
assets to total assets was 0.88%. The Company added $150,000 to the allowance
for loan and lease losses during the second quarter 2014 primarily due to the
increase in gross loans.

As of June 30, 2014, the Bank continued to exceed accepted regulatory
standards for a well-capitalized institution, with a tier 1 leverage ratio of
9.8%, a tier 1 risk-based capital ratio of 14.5%, and a total risk-based
capital ratio of 15.6%.

Tangible book value per share, excluding accumulated other comprehensive
income, was $6.82 for the quarter ended June 30, 2014 compared to $7.67 at
June 30, 2013.Total stockholders' equity was $18.28 million at June 30, 2014
compared to $18.73 million at June 30, 2013, and up from $17.55 million at
March 31, 2014. Year-over-year total stockholders' equity comparisons
partially reflected an improvement in accumulated other comprehensive loss as
a result of increases in the fair value of the Bank's available-for-sale
investment portfolio.

Fenton concluded: "Having served Solera as CFO since its inception, I am
delighted to have been appointed President and CEO, with the opportunity to
guide the Bank as we enter a new era of commitment to our core strengths and
capabilities. We believe there are meaningful opportunities to grow the Bank's
market share, deliver a greater portion of revenue to the bottom line by
operating efficiently and productively, and build value for our shareholders
in the process."

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 emerging
businesses in Lakewood, Colorado.At the core of Solera National Bank is
welcoming, inclusive and respectful customer service, a focus on supporting a
growing and diverse Colorado economy, and a passion to serve the Hispanic
community through service, education and volunteerism. For more information,
please visit http://www.SoleraBank.com.

Cautions Concerning Forward-Looking Statements:

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. ("Company") and its wholly-owned subsidiary, Solera National
Bank ("Bank"), are forward-looking statements within the meaning of Section
27A of the Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934.These forward-looking statements are subject to risks and
uncertainties that could cause actual results to differ materially from those
projected, anticipated or implied. These risks and uncertainties can include
the risks associated with the ability to grow the Bank and the services it
provides, the ability to successfully integrate new business lines and expand
into new markets, competition in the marketplace, general economic conditions
and many other risks described in the Company's Securities and Exchange
Commission filings.The most significant of these uncertainties are described
in our Annual Report on Form 10-K and Quarterly reports on Form 10-Q all of
which any reader of this release is encouraged to study (including all
amendments to those reports) and exhibits to those reports, and include (but
are not limited to) the following: the Company has a limited operating history
upon which to base an estimate of its future financial performance; general
economic conditions may be less favorable than expected, causing an adverse
impact on our financial performance; and the Company is subject to extensive
regulatory oversight, which could restrain its growth and profitability.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.

                           FINANCIAL TABLES FOLLOW



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

($000s)                                       6/30/2014  3/31/2014  6/30/2013
ASSETS                                                            
Cash and due from banks                       $868     $1,054   $765
Federal funds sold                            —         —         300
Interest-bearing deposits with banks          257       257       257
Investment securities, available-for-sale     59,652    66,341    75,375
FHLB and Federal Reserve Bank stocks, at cost 1,403     2,091     2,386
Gross loans                                   83,423    81,963    65,822
Net deferred (fees)/expenses                  73        89        78
Allowance for loan and lease losses           (1,300)   (1,126)   (1,088)
Net loans                                     82,196    80,926    64,812
Loans held for sale                           14,383    8,266     17,251
Premises and equipment, net                   798       845       980
Other real estate owned                       1,485     1,746     1,776
Accrued interest receivable                   652       674       726
Bank-owned life insurance                     4,389     4,353     4,121
Other assets                                  1,887     1,585     1,483
TOTAL ASSETS                                  $167,970 $168,138 $170,232
                                                                 
LIABILITIES AND STOCKHOLDERS' EQUITY                               
Noninterest-bearing demand deposits           $4,747   $6,118   $4,615
Interest-bearing demand deposits              8,197     10,535    11,160
Savings and money market deposits             49,159    52,593    50,575
Time deposits                                 65,983    62,784    58,385
Total deposits                                128,086   132,030   124,735
                                                                 
Accrued interest payable                      74        71        70
Short-term FHLB borrowings                    14,141    8,683     17,807
Long-term FHLB borrowings                     6,500     8,500     7,500
Accounts payable and other liabilities        889       1,305     1,387
TOTAL LIABILITIES                             149,690   150,589   151,499
                                                                 
Common stock                                  27        27        26
Additional paid-in capital                    26,840    26,736    26,315
Accumulated deficit                           (8,407)   (8,384)   (6,739)
Accumulated other comprehensive loss          (78)      (728)     (869)
Treasury stock, at cost, 14,208 shares        (102)     (102)     —
TOTAL STOCKHOLDERS' EQUITY                    18,280    17,549    18,733
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY    $167,970 $168,138 $170,232



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

                           Three Months Ended             Six Months Ended
($000s, except per share    6/30/2014  3/31/2014 6/30/2013 6/30/2014 6/30/2013
data)
Interest and dividend                                            
income
Interest and fees on loans  $1,098    $1,122   $868     $2,220   $1,658
Interest on loans held for  104       53       121      157      215
sale
Investment securities       397       416      411      813      857
Dividends on bank stocks    16        15       19       31       34
Other                       3         2        2        5        3
Total interest income       1,618     1,608    1,421    3,226    2,767
Interest expense                                                 
Deposits                    274       269      257      543      514
FHLB borrowings             40        40       40       80       79
Total interest expense      314       309      297      623      593
Net interest income         1,304     1,299    1,124    2,603    2,174
Provision for loan and      150       —        —        150      —
lease losses
Net interest income after
provision for loan and      1,154     1,299    1,124    2,453    2,174
lease losses
Noninterest income                                               
Customer service and other  30        27       23       57       42
fees
Other income                36        37       36       73       55
Gain on loans sold          1,542     890      2,487    2,432    4,012
Gain on sale of
available-for-sale          59        50       145      109      245
securities
Total noninterest income    1,667     1,004    2,691    2,671    4,354
Noninterest expense                                              
Employee compensation and   1,520     1,683    2,407    3,203    4,080
benefits
Occupancy                   242       250      264      492      520
Professional fees           271       236      103      507      237
Other general and           811       503      602      1,314    1,071
administrative
Total noninterest expense   2,844     2,672    3,376    5,516    5,908
Net (loss) income           $(23)     $(369)   $439     $(392)   $620
                                                                
Earnings (loss) per share   $(0.01)  $(0.14) $0.17  $(0.15) $0.24
Tangible book value per     $6.82   $6.86  $7.67  $6.86  $7.67
share
Net interest margin         3.27%      3.37%     2.82%     3.29%     2.78%
                                                                
Asset Quality:                                                   
Non-performing loans to     0.19%      —%        0.03%              
gross loans
Non-performing assets to    0.88%      1.04%     1.05%              
total assets
Allowance for loan losses   1.56%      1.37%     1.65%              
to gross loans
Allowance for loan losses   807.45%    NM*       NM*                
to non-performing loans
Other real estate owned     $1,485  $1,746 $1,776          
* Not meaningful due to the insignificant amount                   
of non-performing loans.
                                                                
Selected Financial Ratios: (Solera                                
National Bank Only)
Tier 1 leverage ratio       9.8%       9.7%      10.2%              
Tier 1 risk-based capital   14.5%      14.3%     15.8%              
ratio
Total risk-based capital    15.6%      15.3%     16.8%              
ratio

CONTACT: Solera National Bancorp, Inc.
         Robert J. Fenton, President & CEO
         (303) 202-0933
 
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