Bogota Financial Corp. Reports Results for the Three Months Ended March 31, 2025

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 $731,000, or $0.06 per basic and diluted share, compared to a net loss of $441,000, or $0.03 per basic and diluted share, for the comparable prior year period. The increase in net income was primarily due to a decrease in deposit costs and increases in the yield on loans and security income, which resulted in a $942,000 increase in net interest income over the previous year. The Company also recorded a one-time death benefit accrual from its bank-owned life insurance policy for a former employee of approximately $543,000.

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 $1.7 million.

Other Financial Highlights:

• Total assets decreased $41.3 million, or 4.3%, 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, or 51.0%, 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, or 1.8%, to $137.7 million at March 31, 2025 from $140.3 million at December 31, 2024.
• Net loans decreased $10.2 million, or 1.4%, 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, or 1.4%, 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 to 3.55% for the first quarter of 2025 from 3.42% for the three months ended December 31, 2024.
• Federal Home Loan Bank advances decreased $32.4 million, or 18.8% 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 $1.2 million to net income of $731,000 for the three months ended March 31, 2025 compared to a net loss of $441,000 for the three months ended March 31, 2024. This increase was primarily due to an increase of $942,000 in net interest income, and a $590,000 increase in non-interest income, partially offset by an increase of $300,000 in occupancy and equipment costs, and a decrease of $259,000 in income tax benefit.

Interest income increased $862,000, or 8.6%, from $10.1 million for the three months ended March 31, 2024 to $10.9 million for the three months ended March 31, 2025 primarily due to higher yields on interest-earning assets, offset by a decrease in interest-earning assets. 

Interest income on cash and cash equivalents increased $115,000, or 76.7%, to $265,000 for the three months ended March 31, 2025 from $150,000 for the three months ended March 31, 2024 due to a $6.7 million increase in the average balance to $16.6 million for the three months ended March 31, 2025 from $9.9 million for the three months ended March 31, 2024, reflecting the decrease in loans and securities. The increase was augmented by a 27 basis point increase in the average yield from 6.10% for the three months ended March 31, 2024 to 6.37% for the three months ended March 31, 2025 due to the higher interest rate environment.

Interest income on loans increased $396,000, or 4.8%, to $8.6 million for the three months ended March 31, 2025 compared to $8.2 million for the three months ended March 31, 2024 due primarily to a 27 basis point increase in the average yield from 4.61% for the three months ended March 31, 2024 to 4.88% for the three months ended March 31, 2025, which was offset by a $8.3 million decrease in the average balance to $705.1 million for the three months ended March 31, 2025 from $713.4 million for the three months ended March 31, 2024.

Interest income on securities increased $304,000, or 19.9%, to $1.8 million for the three months ended March 31, 2025 from $1.5 million for the three months ended March 31, 2024 primarily due to a 138 basis point increase in the average yield from 3.67% for the three months ended March 31, 2024 to 5.05% for the three months ended March 31, 2025 due to the rebalancing of the balance sheet in the fourth quarter of 2024. This was partially offset by a $21.4 million decrease in the average balance to $145.3 million for the three months ended March 31, 2025 from $166.7 million for the three months ended March 31, 2024. 

Interest expense decreased $80,000, or 1.1%, from $7.4 million for the three months ended March 31, 2024 to $7.3 million for the three months ended March 31, 2025 due to lower average balances on certificates of deposits, offset by an increase in the cost of funds. During the three months ended March 31, 2025, the use of hedges reduced the interest expense on the Federal Home Loan Bank and brokered deposit advances by $177,000. At March 31, 2025, cash flow hedges used to manage interest rate risk had a notional value of $65.0 million, while fair value hedges totaled $60.0 million in notional value.

Interest expense on interest-bearing deposits decreased $208,000, or 3.5%, to $5.8 million for the three months ended March 31, 2025 from $6.0 million for the three months ended March 31, 2024. The average balances of certificates of deposit decreased $32.2 million to $484.3 million for the three months ended March 31, 2025 from $516.5 million for the three months ended March 31, 2024 while the average balance of NOW/money market accounts and savings accounts increased $10.0 million and $2.5 million for the three months ended March 31, 2025, respectively, compared to the three months ended March 31, 2024.

Interest expense on Federal Home Loan Bank advances increased $128,000, or 8.9%, from $1.4 million for the three months ended March 31, 2024 to $1.6 million for the three months ended March 31, 2025. The increase was primarily due to an increase in the average cost of borrowings of 24 basis points to 4.02% for the three months ended March 31, 2025 from 3.78% for the three months ended March 31, 2024 due to new borrowings being at shorter durations. The increase was also due to an increase in the average balance of $4.8 million to $158.1 million for the three months ended March 31, 2025 from $153.3 million for the three months ended March 31, 2024. 

Net interest income increased $942,000, or 35.5%, to $3.6 million for the three months ended March 31, 2025 from $2.7 million for the three months ended March 31, 2024. The increase reflected a 44 basis point increase in our net interest rate spread to 1.12% for the three months ended March 31, 2025 from 0.68% for the three months ended March 31, 2024. Our net interest margin increased 48 basis points to 1.66% for the three months ended March 31, 2025 from 1.18% for the three months ended March 31, 2024.

We recorded a recovery for credit losses for the three months ended March 31, 2025 of $80,000 compared to a provision for credit losses of $35,000 for the three months ended March 31, 2024 due to decreases in loan balances and unfunded commitments.

Non-interest income increased by $590,000, or 197.4%, to $889,000 for the three months ended March 31, 2025 from $299,000 for the three months ended March 31, 2024. Bank-owned life insurance income increased $550,000, or 259.5%, due to a death benefit received related to a former employee. Gain on sale of loans increased $29,000 compared to no gain on sale of loans for the comparable period last year.

For the three months ended March 31, 2025, non-interest expense increased $217,000, or 5.9%, over the comparable 2024 period. This was due to a $300,000, or 80.9% increase in occupancy and equipment costs, which increased as we began leasing certain offices as part of the sale-leaseback transaction completed in the fourth quarter of 2024, which was offset by a $78,000, or 3.6%, decrease in salaries and employee benefit costs, which decreased as a result of reduced headcount, taxes and a reduction in stock-based compensation expense. 

Income tax benefit decreased $259,000, to a benefit of $28,000 for the three months ended March 31, 2025 from a $287,000 benefit for the three months ended March 31, 2024. The decrease was due to an increase of $1.4 million in taxable income, offset by the benefits of income from bank-owned life insurance, which is tax free. 

Balance Sheet Analysis

Total assets were $930.2 million at March 31, 2025, representing a decrease of $41.3 million, or 4.3%, from December 31, 2024. Cash and cash equivalents decreased $26.6 million during the period primarily due to the paydown of borrowings and decrease in deposits. Net loans decreased $10.2 million, or 1.44%, due to a $6.6 million decrease in the balance of residential loans, as well as a $9.7 million decrease in the balance of construction loans and a decrease of $1.1 million in commercial and industrial loans. The decrease was partially offset by new production of $7.8 million of commercial real estate loans. Due to the interest rate environment, we have experienced a decrease in demand for residential and construction loans, which have been primary drivers of our loan growth in recent periods. Securities available for sale decreased $2.6 million, or 1.8%. 

Delinquent loans decreased $842,000 to $13.5 million, or 1.92% of total loans, at March 31, 2025, compared to $14.3 million, or 2.01% of total loans, at December 31, 2024. The decrease was mostly due to the payoff of one commercial real estate loan with a balance of $455,000 and residential loans totaling $387,000 being brought current. During the same timeframe, non-performing assets decreased from $14.0 million at December 31, 2024 to $13.9 million, which represented 1.49% of total assets at March 31, 2025. No loans were charged-off during the three months ended March 31, 2025 or March 31, 2024. The Company’s allowance for credit losses related to loans was 0.37% of total loans and 18.65% of non-performing loans at March 31, 2025 compared to 0.37% of total loans and 21.81% of non-performing loans at December 31, 2024. The Bank does not have any exposure to commercial real estate loans secured by office space. 

Total liabilities decreased $42.3 million, or 5.1%, to $791.9 million mainly due to a $32.4 million decrease in borrowings and a $9.2 million decrease in total deposits. The decrease in deposits reflected a decrease in certificate of deposit accounts, which decreased by $17.3 million to $476.0 million from $493.3 million at December 31, 2024, and a $1.2 million, or 8.3%, decrease in money market accounts. This was offset by an increase in NOW deposit accounts, which increased by $6.6 million to $62.0 million from $55.4 million at December 31, 2024, and by an increase in savings accounts, which increased by $2.4 million from $46.9 million at December 31, 2024 to $49.3 million at March 31, 2025. At March 31, 2025, brokered deposits were $94.2 million or 14.9% of deposits and municipal deposits were $39.2 million or 6.2% of deposits. At March 31, 2025, uninsured deposits represented 7.9% of the Bank’s total deposits. Federal Home Loan Bank advances decreased $32.4 million, or 18.8%, due to paydown of existing borrowings. Total borrowing capacity at the Federal Home Loan Bank is $261.9 million of which $139.8 million has been advanced.

Total stockholders’ equity increased $965,000 to $138.3 million, due to net income of $731,000 and a decrease in accumulated other comprehensive loss of $360,000. At March 31, 2025, the Company’s ratio of average stockholders’ equity-to-average total assets was 14.59%, compared to 13.99% at December 31, 2024.

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 $2,590,950 and $2,620,949, respectively			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 $0.01 par value 1,000,000 shares authorized, none issued and outstanding at March 31, 2025 and December 31, 2024			—				—
Common stock $0.01 par value, 30,000,000 shares authorized, 13,008,964 issued and outstanding at March 31, 2025 and 13,059,175 at December 31, 2024			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 27.5% for 2025 and 2024.
(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 27.5% for 2025 and 2024.
(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 $177,000 and $288,000, respectively.
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