Bogota Financial Corp. Reports Results for the Three Months Ended March 31, 2025
Rhea-AI Summary
Bogota Financial Corp (NASDAQ: BSBK) reported a positive turnaround with net income of $731,000 ($0.06 per share) for Q1 2025, compared to a net loss of $441,000 in the previous year. The improvement was driven by decreased deposit costs and higher yields on loans and securities, resulting in a $942,000 increase in net interest income.
Key financial metrics include:
- Total assets decreased 4.3% to $930.2 million
- Net loans declined 1.4% to $701.5 million
- Deposits decreased to $633.0 million
- Net interest margin improved to 1.66%
The company received a one-time bank-owned life insurance death benefit of $543,000. Credit quality remains stable with delinquent loans at 1.92% of total loans. The bank maintains strong liquidity with uninsured deposits at 7.9% and no exposure to office space commercial real estate loans.
Positive
- Net income increased to $731,000 vs net loss of $441,000 in prior year
- Net interest income increased by $942,000 (35.5%) to $3.6M
- Net interest margin improved by 48 basis points to 1.66%
- One-time death benefit from bank-owned life insurance of $543,000
- Credit quality improved with $80,000 recovery for credit losses vs $35,000 provision last year
- No loans charged-off during the quarter
- Strong liquidity with $261.9M total borrowing capacity at Federal Home Loan Bank
Negative
- Total assets decreased $41.3M (4.3%) to $930.2M
- Net loans decreased $10.2M (1.4%) to $701.5M
- Total deposits decreased $9.2M (1.4%) to $633.0M
- Cash and cash equivalents decreased 51% to $25.6M
- Average cost of deposits increased 13 basis points to 3.55%
- Non-performing assets at 1.49% of total assets
- Decreased demand for residential and construction loans due to interest rate environment
News Market Reaction 1 Alert
On the day this news was published, BSBK gained 2.46%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
TEANECK, N.J., April 30, 2025 (GLOBE NEWSWIRE) -- Bogota Financial Corp. (NASDAQ: BSBK) (the “Company”), the holding company for Bogota Savings Bank (the “Bank”), reported net income for the three months ended March 31, 2025 of
The Bank has completed its previous repurchase program and has no repurchase program outstanding. As of March 31, 2025, 238,258 shares had been repurchased pursuant to the previous program at a cost of
Other Financial Highlights:
- Total assets decreased
$41.3 million , or4.3% , to$930.2 million at March 31, 2025 from$971.5 million at December 31, 2024, due to a decrease in cash and cash equivalents, loans and securities. - Cash and cash equivalents decreased
$26.6 million , or51.0% , to$25.6 million at March 31, 2025 from$52.2 million at December 31, 2024 as excess funds were used to pay down borrowings. - Securities decreased
$2.6 million , or1.8% , to$137.7 million at March 31, 2025 from$140.3 million at December 31, 2024. - Net loans decreased
$10.2 million , or1.4% , to$701.5 million at March 31, 2025 from$711.7 million at December 31, 2024. - Total deposits at March 31, 2025 were
$633.0 million , decreasing$9.2 million , or1.4% , as compared to$642.2 million at December 31, 2024, due to a$9.5 million decrease in interest-bearing deposits, primarily due to a$17.3 million decrease in certificates of deposit, and a$1.2 million decrease in money market accounts, offset by a$6.6 million increase in NOW accounts and a$2.4 million increase in savings accounts. The average cost of deposits increased 13 basis points to3.55% for the first quarter of 2025 from3.42% for the three months ended December 31, 2024. - Federal Home Loan Bank advances decreased
$32.4 million , or18.8% to$139.8 million at March 31, 2025 from$172.2 million as of December 31, 2024.
Kevin Pace, President and Chief Executive Officer, said “We continue to have a positive outlook on achieving the long-term goals we have set. We have also experienced immediate improvements from the balance sheet restructuring completed at the end of 2024. With a full quarter completed, the positive impact of the restructuring is reflected on our financials. The current market turmoil has created uncertainty around rates. We remain very mindful of this as we project our growth and look to improve our net interest margin.”
“Credit quality remains a focus, as it has historically, while we anticipate modest loan growth in the short term. Growth and diversification of our assets are a priority of our strategic plan and we remain dedicated to that vision."
Income Statement Analysis
Comparison of Operating Results for the Three Months Ended March 31, 2025 and March 31, 2024
Net income increased by
Interest income increased
Interest income on cash and cash equivalents increased
Interest income on loans increased
Interest income on securities increased
Interest expense decreased
Interest expense on interest-bearing deposits decreased
Interest expense on Federal Home Loan Bank advances increased
Net interest income increased
We recorded a recovery for credit losses for the three months ended March 31, 2025 of
Non-interest income increased by
For the three months ended March 31, 2025, non-interest expense increased
Income tax benefit decreased
Balance Sheet Analysis
Total assets were
Delinquent loans decreased
Total liabilities decreased
Total stockholders’ equity increased
About Bogota Financial Corp.
Bogota Financial Corp. is a Maryland corporation organized as the mid-tier holding company of Bogota Savings Bank and is the majority-owned subsidiary of Bogota Financial, MHC. Bogota Savings Bank is a New Jersey chartered stock savings bank that has served the banking needs of its customers in northern and central New Jersey since 1893. It operates from seven offices located in Bogota, Hasbrouck Heights, Upper Saddle River, Newark, Oak Ridge, Parsippany and Teaneck, New Jersey and operates a loan production office in Spring Lake, New Jersey.
Forward-Looking Statements
This press release contains certain forward-looking statements about the Company and the Bank. Forward-looking statements include statements regarding anticipated future events and can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as “believe,” “expect,” “anticipate,” “estimate,” and “intend” or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” Forward-looking statements, by their nature, are subject to risks and uncertainties. Certain factors that could cause actual results to differ materially from expected results include increased competitive pressures, changes in the interest rate environment, inflation, general economic conditions including potential recessionary conditions, the imposition of tariffs or other domestic or international governmental policies, conditions within the securities markets, real estate market values in the Bank’s lending area, changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio; the availability of low-cost funding; our continued reliance on brokered and municipal deposits; demand for loans in our market area; changes in the quality of our loan and security portfolios, economic assumptions or changes in our methodology for calculating our allowance for credit losses calculation, increases in non-performing and classified loans, monetary and fiscal policies of the U.S. Government including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System, a failure in or breach of the Company’s operational or security systems or infrastructure, including cyberattacks, the failure to maintain current technologies, failure to retain or attract employees and legislative, accounting and regulatory changes that could adversely affect the business in which the Company and the Bank are engaged.
The Company undertakes no obligation to revise these forward-looking statements or to reflect events or circumstances after the date of this press release.
| BOGOTA FINANCIAL CORP. CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (unaudited) | ||||||||
| As of | As of | |||||||
| March 31, 2025 | December 31, 2024 | |||||||
| Assets | ||||||||
| Cash and due from banks | $ | 8,304,517 | $ | 18,020,527 | ||||
| Interest-bearing deposits in other banks | 17,305,310 | 34,211,681 | ||||||
| Cash and cash equivalents | 25,609,827 | 52,232,208 | ||||||
| Securities available for sale, at fair value | 137,732,521 | 140,307,447 | ||||||
| Loans, net of allowance for credit losses of | 701,484,425 | 711,716,236 | ||||||
| Premises and equipment, net | 4,662,435 | 4,727,302 | ||||||
| Federal Home Loan Bank (FHLB) stock and other restricted securities | 7,343,700 | 8,803,000 | ||||||
| Accrued interest receivable | 4,151,280 | 4,232,563 | ||||||
| Core deposit intangibles | 140,827 | 152,893 | ||||||
| Bank-owned life insurance | 31,112,915 | 31,859,604 | ||||||
| Right of use asset | 10,624,725 | 10,776,596 | ||||||
| Other assets | 7,329,182 | 6,682,035 | ||||||
| Total Assets | $ | 930,191,837 | $ | 971,489,884 | ||||
| Liabilities and Equity | ||||||||
| Non-interest bearing deposits | $ | 32,983,669 | $ | 32,681,963 | ||||
| Interest bearing deposits | 600,051,531 | 609,506,079 | ||||||
| Total deposits | 633,035,200 | 642,188,042 | ||||||
| FHLB advances-short term | 24,500,000 | 29,500,000 | ||||||
| FHLB advances-long term | 115,273,377 | 142,673,182 | ||||||
| Advance payments by borrowers for taxes and insurance | 2,707,508 | 2,809,205 | ||||||
| Lease liabilities | 10,667,946 | 10,780,363 | ||||||
| Other liabilities | 5,754,000 | 6,249,932 | ||||||
| Total liabilities | 791,938,031 | 834,200,724 | ||||||
| Stockholders’ Equity | ||||||||
| Preferred stock | — | — | ||||||
| Common stock | 130,089 | 130,592 | ||||||
| Additional paid-in capital | 55,068,598 | 55,269,962 | ||||||
| Retained earnings | 90,737,595 | 90,006,648 | ||||||
| Unearned ESOP shares (376,338 shares at March 31, 2025 and 382,933 shares at December 31, 2024) | (4,445,293 | ) | (4,520,594 | ) | ||||
| Accumulated other comprehensive loss | (3,237,183 | ) | (3,597,448 | ) | ||||
| Total stockholders’ equity | 138,253,806 | 137,289,160 | ||||||
| Total liabilities and stockholders’ equity | $ | 930,191,837 | $ | 971,489,884 | ||||
| BOGOTA FINANCIAL CORP. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) | ||||||||
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2025 | 2024 | |||||||
| Interest income | ||||||||
| Loans, including fees | $ | 8,603,129 | $ | 8,207,392 | ||||
| Securities | ||||||||
| Taxable | 1,830,394 | 1,516,343 | ||||||
| Tax-exempt | 2,895 | 13,148 | ||||||
| Other interest-earning assets | 487,171 | 324,304 | ||||||
| Total interest income | 10,923,589 | 10,061,187 | ||||||
| Interest expense | ||||||||
| Deposits | 5,762,324 | 5,969,881 | ||||||
| FHLB advances | 1,568,027 | 1,440,069 | ||||||
| Total interest expense | 7,330,351 | 7,409,950 | ||||||
| Net interest income | 3,593,238 | 2,651,237 | ||||||
| (Recovery) provision for credit losses | (80,000 | ) | 35,000 | |||||
| Net interest income after (recovery) provision for credit losses | 3,673,238 | 2,616,237 | ||||||
| Non-interest income | ||||||||
| Fees and service charges | 55,819 | 58,587 | ||||||
| Gain on sale of loans | 29,062 | — | ||||||
| Bank-owned life insurance | 762,231 | 211,959 | ||||||
| Other | 42,260 | 28,532 | ||||||
| Total non-interest income | 889,372 | 299,078 | ||||||
| Non-interest expense | ||||||||
| Salaries and employee benefits | 2,080,199 | 2,158,565 | ||||||
| Occupancy and equipment | 671,469 | 371,117 | ||||||
| FDIC insurance assessment | 106,586 | 100,597 | ||||||
| Data processing | 315,697 | 303,605 | ||||||
| Advertising | 105,500 | 110,100 | ||||||
| Director fees | 159,444 | 155,700 | ||||||
| Professional fees | 198,730 | 196,785 | ||||||
| Other | 222,045 | 246,622 | ||||||
| Total non-interest expense | 3,859,670 | 3,643,091 | ||||||
| Income (loss) before income taxes | 702,940 | (727,776 | ) | |||||
| Income tax benefit | (28,007 | ) | (286,796 | ) | ||||
| Net income (loss) | $ | 730,947 | $ | (440,980 | ) | |||
| Earnings (loss) per Share - basic | $ | 0.06 | $ | (0.03 | ) | |||
| Earnings (loss) per Share - diluted | $ | 0.06 | $ | (0.03 | ) | |||
| Weighted average shares outstanding - basic | 12,649,573 | 12,852,930 | ||||||
| Weighted average shares outstanding - diluted | 12,650,520 | 12,852,930 | ||||||
| BOGOTA FINANCIAL CORP. SELECTED RATIOS (unaudited) | ||||||||
| At or For the Three Months | ||||||||
| Ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| Performance Ratios (1): | ||||||||
| Return (loss) on average assets (2) | 0.08 | % | (0.19 | )% | ||||
| Return (loss) on average equity (3) | 0.53 | % | (1.29 | )% | ||||
| Interest rate spread (4) | 1.12 | % | 0.68 | % | ||||
| Net interest margin (5) | 1.66 | % | 1.18 | % | ||||
| Efficiency ratio (6) | 86.10 | % | 137.41 | % | ||||
| Average interest-earning assets to average interest-bearing liabilities | 114.03 | % | 114.57 | % | ||||
| Net loans to deposits | 110.81 | % | 106.42 | % | ||||
| Average equity to average assets (7) | 14.59 | % | 14.36 | % | ||||
| Capital Ratios: | ||||||||
| Tier 1 capital to average assets | 15.00 | % | 13.23 | % | ||||
| Asset Quality Ratios: | ||||||||
| Allowance for credit losses as a percent of total loans | 0.37 | % | 0.40 | % | ||||
| Allowance for credit losses as a percent of non-performing loans | 18.65 | % | 22.69 | % | ||||
| Net charge-offs to average outstanding loans during the period | -- | % | -- | % | ||||
| Non-performing loans as a percent of total loans | 1.97 | % | 1.75 | % | ||||
| Non-performing assets as a percent of total assets | 1.49 | % | 1.30 | % | ||||
| (1) | Certain performance ratios for the three months ended March 31, 2025 and 2024 are annualized. | |
| (2) | Represents net income (loss) divided by average total assets. | |
| (3) | Represents net income (loss) divided by average stockholders’ equity. | |
| (4) | Represents the difference between the weighted average yield on average interest-earning assets and the weighted average cost of average interest-bearing liabilities. Tax exempt income is reported on a tax equivalent basis using a combined federal and state marginal tax rate of | |
| (5) | Represents net interest income as a percent of average interest-earning assets. Tax exempt income is reported on a tax equivalent basis using a combined federal and state marginal tax rate of | |
| (6) | Represents non-interest expenses divided by the sum of net interest income and non-interest income. | |
| (7) | Represents average stockholders’ equity divided by average total assets. | |
LOANS
Loans are summarized as follows at March 31, 2025 and December 31, 2024:
| March 31, | December 31, | |||||||
| 2025 | 2024 | |||||||
| (unaudited) | ||||||||
| Real estate: | ||||||||
| Residential First Mortgage | $ | 466,177,175 | $ | 472,747,542 | ||||
| Commercial Real Estate | 125,783,750 | 118,008,866 | ||||||
| Multi-Family Real Estate | 73,465,142 | 74,152,418 | ||||||
| Construction | 33,501,463 | 43,183,657 | ||||||
| Commercial and Industrial | 5,070,847 | 6,163,747 | ||||||
| Consumer | 76,998 | 80,955 | ||||||
| Total loans | 704,075,375 | 714,337,185 | ||||||
| Allowance for credit losses | (2,590,950 | ) | (2,620,949 | ) | ||||
| Net loans | $ | 701,484,425 | $ | 711,716,236 | ||||
The following tables set forth the distribution of total deposit accounts, by account type, at the dates indicated:
| At March 31, | At December 31, | |||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||
| Amount | Percent | Average Rate | Amount | Percent | Average Rate | |||||||||||||||||||
| (unaudited) | ||||||||||||||||||||||||
| Noninterest bearing demand accounts | $ | 32,983,669 | 5.21 | % | — | % | $ | 32,681,963 | 5.09 | % | — | % | ||||||||||||
| NOW accounts | 61,950,627 | 9.79 | % | 2.61 | 55,378,051 | 8.62 | % | 2.53 | ||||||||||||||||
| Money market accounts | 12,835,160 | 2.03 | % | 0.50 | 13,996,460 | 2.18 | % | 0.58 | ||||||||||||||||
| Savings accounts | 49,281,181 | 7.78 | % | 1.96 | 46,851,793 | 7.30 | % | 1.90 | ||||||||||||||||
| Certificates of deposit | 475,984,563 | 75.19 | % | 4.17 | 493,279,775 | 76.81 | % | 4.37 | ||||||||||||||||
| Total | $ | 633,035,200 | 100.00 | % | 3.55 | % | $ | 642,188,042 | 100.00 | % | 3.42 | % | ||||||||||||
Average Balance Sheets and Related Yields and Rates
The following tables present information regarding average balances of assets and liabilities, the total dollar amounts of interest income and dividends from average interest-earning assets, the total dollar amounts of interest expense on average interest-bearing liabilities, and the resulting annualized average yields and costs. The yields and costs for the periods indicated are derived by dividing income or expense by the average balances of assets or liabilities, respectively, for the periods presented. Average balances have been calculated using daily balances. Nonaccrual loans are included in average balances only. Loan fees are included in interest income on loans and are not material.
| Three Months Ended March 31, | ||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||
| Average Balance | Interest and Dividends | Yield/ Cost (1) | Average Balance | Interest and Dividends | Yield/ Cost (1) | |||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||
| Assets: | (unaudited) | |||||||||||||||||||||||
| Cash and cash equivalents | $ | 16,601 | $ | 265 | 6.37 | % | $ | 9,865 | $ | 150 | 6.10 | % | ||||||||||||
| Loans | 705,095 | 8,603 | 4.88 | % | 713,430 | 8,207 | 4.61 | % | ||||||||||||||||
| Securities | 145,280 | 1,833 | 5.05 | % | 166,666 | 1,529 | 3.67 | % | ||||||||||||||||
| Other interest-earning assets | 8,305 | 222 | 10.72 | % | 8,101 | 175 | 8.63 | % | ||||||||||||||||
| Total interest-earning assets | 875,281 | 10,923 | 4.99 | % | 898,062 | 10,061 | 4.49 | % | ||||||||||||||||
| Non-interest-earning assets | 68,251 | 55,694 | ||||||||||||||||||||||
| Total assets | $ | 943,532 | $ | 953,756 | ||||||||||||||||||||
| Liabilities and equity: | ||||||||||||||||||||||||
| NOW and money market accounts | $ | 79,400 | $ | 458 | 2.34 | % | $ | 69,450 | $ | 334 | 1.94 | % | ||||||||||||
| Savings accounts | 45,832 | 225 | 1.99 | % | 43,348 | 198 | 1.84 | % | ||||||||||||||||
| Certificates of deposit (1) | 484,253 | 5,079 | 4.25 | % | 516,496 | 5,438 | 4.23 | % | ||||||||||||||||
| Total interest-bearing deposits | 609,485 | 5,762 | 3.83 | % | 629,294 | 5,970 | 3.82 | % | ||||||||||||||||
| Federal Home Loan Bank advances (1) | 158,116 | 1,568 | 4.02 | % | 153,269 | 1,440 | 3.78 | % | ||||||||||||||||
| Total interest-bearing liabilities | 767,601 | 7,330 | 3.87 | % | 782,563 | 7,410 | 3.81 | % | ||||||||||||||||
| Non-interest-bearing deposits | 32,763 | 30,018 | ||||||||||||||||||||||
| Other non-interest-bearing liabilities | 5,463 | 4,175 | ||||||||||||||||||||||
| Total liabilities | 805,827 | 816,756 | ||||||||||||||||||||||
| Total equity | 137,705 | 136,810 | ||||||||||||||||||||||
| Total liabilities and equity | $ | 943,532 | $ | 953,566 | ||||||||||||||||||||
| Net interest income | $ | 3,593 | $ | 2,651 | ||||||||||||||||||||
| Interest rate spread (2) | 1.12 | % | 0.68 | % | ||||||||||||||||||||
| Net interest margin (3) | 1.66 | % | 1.18 | % | ||||||||||||||||||||
| Average interest-earning assets to average interest-bearing liabilities | 114.03 | % | 114.76 | % | ||||||||||||||||||||
| 1. | Cash flow and fair value hedges are used to manage interest rate risk. During the three months ended March 31, 2025 and 2024, the net effect on interest expense on the Federal Home Loan Bank advances and certificates of deposit was a reduced expense of | |
| 2. | Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities. | |
| 3. | Net interest margin represents net interest income divided by average total interest-earning assets. | |
Rate/Volume Analysis
The following table sets forth the effects of changing rates and volumes on net interest income. The rate column shows the effects attributable to changes in rate (changes in rate multiplied by prior volume). The volume column shows the effects attributable to changes in volume (changes in volume multiplied by prior rate). The net column represents the sum of the prior columns. Changes attributable to changes in both rate and volume that cannot be segregated have been allocated proportionally based on the changes due to rate and the changes due to volume.
| Three Months Ended March 31, 2025 | ||||||||||||
| Compared to | ||||||||||||
| Three Months Ended March 31, 2024 | ||||||||||||
| Increase (Decrease) Due to | ||||||||||||
| Volume | Rate | Net | ||||||||||
| (In thousands) | ||||||||||||
| Interest income: | (unaudited) | |||||||||||
| Cash and cash equivalents | $ | 108 | $ | 7 | $ | 115 | ||||||
| Loans receivable | (575 | ) | 971 | 396 | ||||||||
| Securities | (1,093 | ) | 1,397 | 304 | ||||||||
| Other interest earning assets | 4 | 43 | 47 | |||||||||
| Total interest-earning assets | (1,555 | ) | 2,417 | 862 | ||||||||
| Interest expense: | ||||||||||||
| NOW and money market accounts | 51 | 73 | 124 | |||||||||
| Savings accounts | 11 | 16 | 27 | |||||||||
| Certificates of deposit | (526 | ) | 167 | (359 | ) | |||||||
| Federal Home Loan Bank advances | 43 | 85 | 128 | |||||||||
| Total interest-bearing liabilities | (421 | ) | 341 | (80 | ) | |||||||
| Net decrease in net interest income | $ | (1,134 | ) | $ | 2,076 | $ | 942 | |||||
Contacts
Kevin Pace – President & CEO, 201-862-0660 ext. 1110
FAQ
How much did Bogota Financial (BSBK) earn in Q1 2025?
What caused BSBK's deposit costs to change in Q1 2025?
What is BSBK's loan performance and credit quality as of March 2025?
How much are BSBK's uninsured deposits as of March 2025?
What is BSBK's net interest margin trend in Q1 2025?
