A year after a proxy battle that gutted its board, Solera National Bancorp has show a second quarter of profits, according to its latest earnings report filed Thursday, all but proving that a new direction is precisely what the Hispanic-centric bank needed.
For the three months ended March 31, Solera, the holding company for Solera National Bank in Lakewood, reported net income of $475,000, or 17 cents per share. The bank reported losses in the year-ago quarter that topped $369,000 and 14 cents per share.
the bank has shown a profit after the bank put its core focus on commercial banking and trimmed the overhead expenses that fueled the proxy battle.
“Now we’re back to the starting line, at square one, and not looking into the rearview mirror,” board chairman Michael Quagliano said. “We like what we see looking forward.”
The bank is opening an investment services division this year, headed by board member Jackson Lounsberry.
“We are excited about the benefits of teaming with an established advisor to extend investment management capabilities to clients,” president and CEO Robert Fenton said in a statement.
The bank also has contracted to buy its Lakewood location, in an area with high Hispanic population. The building had been on a long-term lease, Quagliano said.
“Our roots are grounded in the Hispanic community, there’s not doubt about it,” he said.
Total deposits dipped to $117 million, down from $132 million a year before, mostly from the trimming of certificates of deposits, the bank reported.
Similarly, total assets dropped to $143.5 million from $144.7 million a year ago, the result of the bank’s sale of its only foreclosed property
“By focusing on strengthening the Solera franchise and concentrating on productivity and efficient operations, we have experienced a dramatic turnaround from losses to profitability,” Fenton said.
that tossed the sitting board and leadership, mostly because the bank had been losing money while paying high salaries.
David Migoya: 303-954-1506, dmigoya@denverpost.com or twitter.com/davidmigoya
