• Bogota Financial Corp. Reports Results for the Three and Six Months Ended June 30, 2024

    Источник: Nasdaq GlobeNewswire / 31 июл 2024 16:10:00   America/New_York

    TEANECK, N.J., July 31, 2024 (GLOBE NEWSWIRE) --  Bogota Financial Corp. (NASDAQ: BSBK) (the “Company”), the holding company for Bogota Savings Bank (the “Bank”), reported a net loss for the three months ended June 30, 2024 of $432,000, or $0.03 per basic and diluted share, compared to net income of $857,000, or $0.07 per basic and diluted share, for the comparable prior year period. The Company reported a net loss for the six months ended June 30, 2024 of $873,000, or $0.07 per basic and diluted share, compared to net income of $1.8 million, or $0.14 per basic and diluted share, for the six months ended June 30, 2023.

    On April 24, 2024, the Company announced it had received regulatory approval for the repurchase of up to 237,090 shares of its common stock, approximately 5% of its then outstanding common stock (excluding shares held by Bogota Financial, MHC). The program does not have a scheduled expiration date and the Board of Directors has the right to suspend or discontinue the program at any time. As of June 30, 2024, 107,323 shares have been repurchased pursuant to the program at a cost of $735,000.

    Other Financial Highlights:

     Total assets increased $35.4 million, or 3.8%, to $974.7 million at June 30, 2024 from $939.3 million at December 31, 2023, due to an increase in securities, offset by a decrease in cash and cash equivalents and loans.
       
     Cash and cash equivalents decreased $7.3 million, or 29.4%, to $17.6 million at June 30, 2024 from $24.9 million at December 31, 2023 as excess funds were used to purchase securities.
       
     Securities increased $46.4 million, or 32.8%, to $187.9 million at June 30, 2024 from $141.5 million at December 31, 2023.
       
     Net loans decreased $7.1 million, or 1.0%, to $707.6 million at June 30, 2024 from $714.7 million at December 31, 2023.
       
     Total deposits at June 30, 2024 were $649.1 million, increasing $23.8 million, or 3.8%, as compared to $625.3 million at December 31, 2023, primarily due to a $21.0 million increase in interest-bearing deposits primarily in certificates of deposit, and also by a $2.8 million increase in non-interest bearing demand accounts. The average rate on deposits increased 145 basis points to 3.91% for the first half of 2024 from 2.46% for 2023 due to higher interest rates and a larger percentage of deposits consisting of higher-costing certificates of deposit.
       
     Federal Home Loan Bank advances increased $11.7 million, or 7.0% to $179.4 million at June 30, 2024 from $167.7 million as of December 31, 2023.
       

    Kevin Pace, President and Chief Executive Officer, said “We have seen growth in our commercial lending portfolio and deposits. Our credit quality has remained strong through this growth as we continue to be prudent lenders. We remain focused on executing our strategic plan to deliver value to our shareholders and customers. Growth is a key component in our plan as we look to expand our services and technology offerings to attract new customers.”

    “The Bank completed its third stock repurchase program earlier this year and promptly began its fourth buyback. We remain diligent in our efforts to show confidence in our value."

    Income Statement Analysis

    Comparison of Operating Results for the Three Months Ended June 30, 2024 and June 30, 2023

    Net income decreased by $1.3 million, or 150.5%, to a net loss of $432,000 for the three months ended June 30, 2024 from net income of $857,000 for the three months ended June 30, 2023. This decrease was primarily due to a decrease of $1.5 million in net interest income, partially offset by a decrease of $494,000 in income tax expense.

    Interest income increased $1.1 million, or 11.3%, from $9.4 million for the three months ended June 30, 2023 to $10.5 million for the three months ended June 30, 2024 due to higher yields on interest-earning assets and an increase in the average balance of securities, partially offset by a decrease in the average balance of loans. 

    Interest income on cash and cash equivalents decreased $22,000, or 14.9%, to $127,000 for the three months ended June 30, 2024 from $149,000 for the three months ended June 30, 2023 due to a $3.8 million decrease in the average balance to $8.6 million for the three months ended June 30, 2024 from $12.4 million for the three months ended June 30, 2023, reflecting the use of excess cash to purchase securities. The decrease was offset by a 110 basis point increase in the average yield from 4.80% for the three months ended June 30, 2023 to 5.90% for the three months ended June 30, 2024 due to the higher interest rate environment.

    Interest income on loans increased $157,000, or 1.9%, to $8.3 million for the three months ended June 30, 2024 compared to $8.1 million for the three months ended June 30, 2023 due primarily to an 11 basis point increase in the average yield from 4.59% for the three months ended June 30, 2023 to 4.70% for the three months ended June 30, 2024, offset by a $2.1 million decrease in the average balance to $710.1 million for the three months ended June 30, 2024 from $712.2 million for the three months ended June 30, 2023.

    Interest income on securities increased $843,000, or 82.9%, to $1.9 million for the three months ended June 30, 2024 from $1.0 million for the three months ended June 30, 2023 primarily due to a $39.3 million increase in the average balance to $185.5 million for the three months ended June 30, 2024 from $146.2 million for the three months ended June 30, 2023, and due to a 123 basis point increase in the average yield from 2.78% for the three months ended June 30, 2023 to 4.01% for the three months ended June 30, 2024.

    Interest expense increased $2.6 million, or 51.2%, from $5.1 million for the three months ended June 30, 2023 to $7.7 million for the three months ended June 30, 2024 due to higher costs and average balances on certificates of deposit and borrowings.

    Interest expense on interest-bearing deposits increased $2.0 million, or 48.5%, to $6.2 million for the three months ended June 30, 2024 from $4.2 million for the three months ended June 30, 2023. The increase was due to a 131 basis point increase in the average cost of deposits to 3.99% for the three months ended June 30, 2024 from 2.68% for the three months ended June 30, 2023. The increase in the average cost of deposits was due to the higher interest rate environment and a change in the composition of the deposit portfolio.  The average balances of certificates of deposit increased $23.9 million to $517.9 million for the three months ended June 30, 2024 from $494.0 million for the three months ended June 30, 2023 while the average balance of NOW/money market accounts and savings accounts decreased $20.6 million and $4.8 million for the three months ended June 30, 2024, respectively, compared to the three months ended June 30, 2023.

    Interest expense on Federal Home Loan Bank advances increased $574,000, or 63.6%, from $903,000 for the three months ended June 30, 2023 to $1.5 million for the three months ended June 30, 2024. The increase was primarily due to an increase in the average balance of $49.8 million to $170.3 million for the three months ended June 30, 2024 from $120.5 million for the three months ended June 30, 2023. The increase was also due to an increase in the average cost of borrowings of 48 basis points to 3.49% for the three months ended June 30, 2024 from 3.01% for the three months ended June 30, 2023 due to the new borrowings being at higher rates. Cash flow hedges used to manage interest rate risk totaled $115.0 million at June 30, 2024. During the three months ended June 30, 2024, the use of the cash flow hedges reduced the interest expense on the Federal Home Loan Bank advances and certificates of deposit by $461,000.

    Net interest income decreased $1.6 million, or 36.1%, to $2.7 million for the three months ended June 30, 2024 from $4.3 million for the three months ended June 30, 2023.  The decrease reflected an 85 basis point decrease in our net interest rate spread to 0.72% for the three months ended June 30, 2024 from 1.57% for the three months ended June 30, 2023. Our net interest margin decreased 75 basis points to 1.21% for the three months ended June 30, 2024 from 1.96% for the three months ended June 30, 2023.

    We recorded a $35,000 provision for credit losses for the three months ended June 30, 2024 compared to a $125,000 recovery for credit losses for the three-month period ended June 30, 2023. The entire provision in the second quarter of 2024 was due to an increase in corporate securities. In addition to the recorded provision, the Company reclassified $38,000 from the existing allowance for credit losses related to loans to the allowance for credit losses related to held-to-maturity securities to reflect the changing composition of the balance sheet and related credit risk. 

    Non-interest income increased by $20,000, or 7.0%, to $303,000 for the three months ended June 30, 2024 from $283,000 for the three months ended June 30, 2023.  Bank-owned life insurance income increased $25,000, or 13.1%, due to higher balances during 2024, which was partially offset by a lower gain on sale of loans. 

    For the three months ended June 30, 2024, non-interest expense increased $94,000, or 2.6%, over the comparable 2023 period. Professional fees increased $146,000, or 128.1%, due to higher consulting expense related to strategic business planning. Data processing expense increased $83,000, or 35.5%, due to higher processing costs. Advertising expense also increased by $19,000, or 19.8%, which was related to promotions for our new branch location. This was offset by a $158,000, or 6.9% reduction in salaries and employee benefits, which decreased due to lower headcount and increased expenses in 2023 related to the retirement of the previous Chief Executive Officer.

    Income tax expense decreased $494,000, or 232.1%, to a benefit of $281,000 for the three months ended June 30, 2024 from a $213,000 expense for the three months ended June 30, 2023. The decrease was due to a reduction of $1.8 million in taxable income. 

    Comparison of Operating Results for the Six Months Ended June 30, 2024 and June 30, 2023

    Net income decreased by $2.7 million, or 147.2%, to a net loss of $873,000 for the six months ended June 30, 2024 from net income of $1.8 million for the six months ended June 30, 2023.   This decrease was primarily due to a decrease of $3.4 million in net interest income, partially offset by a decrease of $1.1 million in income tax expense.

    Interest income increased $2.1 million, or 11.5%, from $18.4 million for the six months ended June 30, 2023 to $20.5 million for the six months ended June 30, 2024 due to higher yields on interest-earning assets and an increase in the average balance of securities, partially offset by a decrease in the average balance of loans. 

    Interest income on cash and cash equivalents increased $22,000, or 8.7%, to $276,000 for the six months ended June 30, 2024 from $254,000 for the six months ended June 30, 2023 due a 171 basis point increase in the average yield from 4.82% for the six months ended June 30, 2023 to 6.53% for the six months ended June 30, 2024 due to the higher interest rate environment.  The increase was partially offset by a $2.1 million decrease in the average balance to $8.5 million for the six months ended June 30, 2024 from $10.6 million for the six months ended June 30, 2023, reflecting the decrease of liquidity due to increased securities purchases.

    Interest income on loans increased $666,000, or 4.2%, to $16.5 million for the six months ended June 30, 2024 compared to $15.8 million for the six months ended June 30, 2023 due primarily to 19 basis point increase in the average yield from 4.45% for the six months ended June 30, 2023 to 4.64% for the six months ended June 30, 2024, offset by a $3.3 million decrease in the average balance to $711.7 million for the six months ended June 30, 2024 from $715.1 million for the six months ended June 30, 2023.

    Interest income on securities increased $1.3 million, or 60.4%, to $3.4 million for the six months ended June 30, 2024 from $2.1 million for the six months ended June 30, 2023 primarily due to a 111 basis point increase in the average yield from 2.74% for the six months ended June 30, 2023 to 3.85% for the six months ended June 30, 2024, and a $22.0 million increase in the average balance to $176.1 million for the six months ended June 30, 2024 from $154.0 million for the six months ended June 30, 2023.

    Interest expense increased $5.5 million, or 57.6%, from $9.6 million for the six months ended June 30, 2023 to $15.1 million for the six months ended June 30, 2024 due to higher costs and average balances on certificates of deposit and borrowings.

    Interest expense on interest-bearing deposits increased $4.3 million, or 54.2%, to $12.2 million for the six months ended June 30, 2024 from $7.9 million for the six months ended June 30, 2023. The increase was due to a 145 basis point increase in the average cost of deposits to 3.91% for the six months ended June 30, 2024 from 2.46% for the six months ended June 30, 2023. The increase in the average cost of deposits was due to the higher interest rate environment and a change in the composition of the deposit portfolio.  The average balances of certificates of deposit increased $18.5 million to $517.2 million for the six months ended June 30, 2024 from $498.7 million for the six months ended June 30, 2023 while average NOW/money market accounts and savings accounts decreased $31.9 million and $7.5 million for the six months ended June 30, 2024, respectively, compared to the six months ended June 30, 2023.

    Interest expense on Federal Home Loan Bank advances increased $1.2 million, or 73.6%, from $1.7 million for the six months ended June 30, 2023 to $2.9 million for the six months ended June 30, 2024. The increase was primarily due to an increase in the average balance of $54.2 million to $160.3 million for the six months ended June 30, 2024 from $106.1 million for the six months ended June 30, 2023. The increase was also due to an increase in the average cost of borrowings of 47 basis points to 3.66% for the six months ended June 30, 2024 from 3.19% for the six months ended June 30, 2023 due to the new borrowings being at higher rates. Cash flow hedges used to manage interest rate risk totaled $115.0 million at June 30, 2024. During the six months ended June 30, 2024, the use of the cash flow hedges reduced the interest expense on the Federal Home Loan Bank advances and certificates of deposit by $749,000.

    Net interest income decreased $3.4 million, or 38.8%, to $5.4 million for the six months ended June 30, 2024 from $8.8 million for the six months ended June 30, 2023.  The decrease reflected a 93 basis point decrease in our net interest rate spread to 0.68% for the six months ended June 30, 2024 from 1.61% for the six months ended June 30, 2023. Our net interest margin decreased 81 basis points to 1.20% for the six months ended June 30, 2024 from 2.01% for the six months ended June 30, 2023.

    We recorded a $70,000 provision for credit losses for the six months ended June 30, 2024 compared to a $125,000 recovery for credit losses for the six-month period ended June 30, 2023. The entire provision in the first half of 2024 was due to an increase in held-to-maturity corporate securities. In addition to the recorded provision, the Company reclassified $38,000 from the existing allowance for credit losses related to loans to the allowance for credit losses related to held-to-maturity securities to reflect the changing composition of the balance sheet and related credit risk.

    Non-interest income increased by $35,000, or 6.3%, to $602,000 for the six months ended June 30, 2024 from $567,000 for the six months ended June 30, 2023.  Bank-owned life insurance income increased $51,000, or 13.5%, due to higher balances during 2024, which was partially offset by a lower gain on sale of loans.

    For the six months ended June 30, 2024, non-interest expense increased $219,000, or 3.1%, over the comparable 2023 period. Professional fees increased $194,000, or 73.5% due to higher consulting expense related to strategic business planning. Data processing expense increased $110,000, or 21.5%, due to higher processing costs. These were offset by a $162,000, or 3.6% reduction in salaries and employee benefit, which decreased due to lower headcount and increased expenses in 2023 related to the retirement of the previous Chief Executive Officer.

    Income tax expense decreased $1.1 million, or 211.2%, to a benefit of $568,000 for the six months ended June 30, 2024 from a $511,000 expense for the six months ended June 30, 2023. The decrease was due to a reduction of $3.8 million in taxable income. 

    Balance Sheet Analysis

    Total assets were $974.7 million at June 30, 2024, representing an increase of $35.4 million, or 3.8%, from December 31, 2023.  Cash and cash equivalents decreased $7.3 million during the period primarily due to the purchase of new securities offset by loan repayments. Net loans decreased $7.0 million, or 1.0%, due to $28.2 million in repayments including a $10.3 million decrease in the balance of residential loans, partially offset by new production of $21.2 million, including $11.0 million and $3.4 million of commercial real estate and commercial and industrial loans, respectively. Due to the interest rate environment, we have seen a decrease in demand for residential and construction loans, which have been primary drivers of our loan growth in recent periods.  Securities held to maturity increased $8.4 million, or 11.6%, and securities available for sale increased $38.0 million or 55.1%, due to new purchases of mortgage-backed securities. 

    Delinquent loans increased $888,000 to $13.5 million, or 1.90% of total loans, at June 30, 2024, compared to $12.6 million at December 31, 2023. The increase was mostly due to one commercial real estate loan with a balance of $761,000, which is considered well-secured with a loan-to-value of 59%. During the same timeframe, non-performing assets increased from $12.8 million at December 31, 2023 to $13.0 million which represented 1.33% of total assets at June 30, 2024. No loans were charged-off during the three or six months ended June 30, 2024 or June 30, 2023. The Company’s allowance for credit losses related to loans was 0.39% of total loans and 21.20% of non-performing loans at June 30, 2024 compared to 0.39% of total loans and 21.81% of non-performing loans at December 31, 2023.  The Bank does not have any exposure to commercial real estate loans secured by office space. At June 30, 2024, the Company's allowance for credit losses related to held-to-maturity securities totaled $108,000 or 0.13% of the total held-to-maturity securities portfolio.

    Total liabilities increased $36.3 million, or 4.5%, to $838.4 million mainly due to a $21.0 million increase in interest bearing deposits and by an $11.8 million increase in borrowings. Total deposits increased $23.8 million, or 3.8%, to $649.1 million at June 30, 2024 from $625.3 million at December 31, 2023. The increase in deposits reflected an increase in certificate of deposit accounts, which increased by $19.3 million to $512.6 million from $493.3 million at December 31, 2023, an increase in NOW deposit accounts, which increased by $3.5 million to $44.9 million from $41.3 million at December 31, 2023, and by an increase in noninterest bearing demand accounts, which increased by $2.8 million from $30.6 million at December 31, 2023 to $33.3 million at June 30, 2024. At June 30, 2024, brokered deposits were $91.2 million or 14.1% of deposits and municipal deposits were $35.4 million or 5.5% of deposits.  At June 30, 2024, uninsured deposits represented 10.7% of the Bank’s total deposits. Federal Home Loan Bank advances increased $11.8 million, or 7.0%, due to new borrowings, for which the durations have primarily been short-term in nature as we remain mindful of the changing interest rate environment and potential for interest rate cuts from the Federal Reserve. Total borrowing capacity at the Federal Home Loan Bank is $304.2 million of which $179.4 million has been advanced.

    Total stockholders’ equity decreased $830,000 to $136.3 million, due to a net loss of $873,000 and the repurchase of 107,323 shares of stock at a cost of $735,000, offset by a decrease in accumulated other comprehensive loss for securities available for sale of $483,000 and stock compensation of $150,000 for the three months ended June 30, 2024. At June 30, 2024, the Company’s ratio of average stockholders’ equity-to-total assets was 13.65%, compared to 15.32% at December 31, 2023.

    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 or 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, either of which may impact 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 
      June 30, 2024  December 31, 2023 
    Assets        
    Cash and due from banks $8,271,970  $13,567,115 
    Interest-bearing deposits in other banks  9,319,571   11,362,356 
    Cash and cash equivalents  17,591,541   24,929,471 
    Securities available for sale, at fair value  106,861,767   68,888,179 
    Securities held to maturity, net of allowance for securities credit losses of $108,000 and zero, respectively (fair value - $74,024,249 and $65,374,753, respectively)  81,065,793   72,656,179 
    Loans, net of allowance for credit losses of $2,747,950 and $2,785,949, respectively  707,645,118   714,688,635 
    Premises and equipment, net  7,938,263   7,687,387 
    Federal Home Loan Bank (FHLB) stock and other restricted securities  9,141,200   8,616,100 
    Accrued interest receivable  4,230,702   3,932,785 
    Core deposit intangibles  178,513   206,116 
    Bank-owned life insurance  31,414,865   30,987,851 
    Other assets  8,681,855   6,731,500 
    Total Assets $974,749,617  $939,324,203 
    Liabilities and Equity        
    Non-interest bearing deposits $33,345,648  $30,554,842 
    Interest bearing deposits  615,774,225   594,792,300 
    Total deposits  649,119,873   625,347,142 
    FHLB advances-short term  60,000,000   37,500,000 
    FHLB advances-long term  119,449,102   130,189,663 
    Advance payments by borrowers for taxes and insurance  3,238,297   2,733,709 
    Other liabilities  6,598,699   6,380,486 
    Total liabilities  838,405,971   802,151,000 
             
    Stockholders’ Equity        
    Preferred stock $0.01 par value 1,000,000 shares authorized, none issued and outstanding at June 30, 2024 and December 31, 2023      
    Common stock $0.01 par value, 30,000,000 shares authorized, 13,148,824 issued and outstanding at June 30, 2024 and 13,279,230 at December 31, 2023  131,388   132,792 
    Additional paid-in capital  55,561,684   56,149,915 
    Retained earnings  91,303,609   92,177,068 
    Unearned ESOP shares (396,415 shares at June 30, 2024 and 409,750 shares at December 31, 2023)  (4,671,196)  (4,821,798)
    Accumulated other comprehensive loss  (5,981,839)  (6,464,774)
    Total stockholders’ equity  136,343,646   137,173,203 
    Total liabilities and stockholders’ equity $974,749,617  $939,324,203 


    BOGOTA FINANCIAL CORP.
    CONSOLIDATED STATEMENTS OF OPERATIONS
    (unaudited)
     
      
      Three Months Ended  Six Months Ended 
      June 30,  June 30, 
      2024  2023  2024  2023 
    Interest income                
    Loans, including fees $8,299,404  $8,141,719  $16,506,796  $15,841,157 
    Securities                
    Taxable  1,846,717   996,338   3,363,060   2,047,598 
    Tax-exempt  13,124   20,232   26,272   65,134 
    Other interest-earning assets  314,964   248,914   639,268   470,503 
      Total interest income  10,474,209   9,407,203   20,535,396   18,424,392 
    Interest expense                
    Deposits  6,253,895   4,210,984   12,223,776   7,925,981 
    FHLB advances  1,476,600   902,839   2,916,669   1,680,193 
      Total interest expense  7,730,495   5,113,823   15,140,445   9,606,174 
    Net interest income  2,743,714   4,293,380   5,394,951   8,818,218 
    Provision (recovery) for credit losses  35,000   (125,000)  70,000   (125,000)
    Net interest income after provision (recovery) for credit losses  2,708,714   4,418,380   5,324,951   8,943,218 
    Non-interest income                
    Fees and service charges  49,203   45,700   107,790   97,852 
    Gain on sale of loans     16,150      29,375 
    Bank-owned life insurance  215,056   190,147   427,015   376,200 
    Other  38,945   31,479   67,477   63,328 
      Total non-interest income  303,204   283,476   602,282   566,755 
    Non-interest expense                
    Salaries and employee benefits  2,143,388   2,301,236   4,301,953   4,463,605 
    Occupancy and equipment  366,908   358,757   738,025   741,544 
    FDIC insurance assessment  106,716   127,119   207,313   187,119 
    Data processing  318,520   235,095   622,125   512,192 
    Advertising  115,100   96,083   225,200   243,383 
    Director fees  151,549   159,338   307,249   318,675 
    Professional fees  260,112   114,018   456,897   263,268 
    Other  263,490   240,562   510,112   419,770 
      Total non-interest expense  3,725,783   3,632,208   7,368,874   7,149,556 
    (Loss) income before income taxes  (713,865)  1,069,648   (1,441,641)  2,360,417 
    Income tax (benefit) expense  (281,386)  213,007   (568,182)  511,069 
    Net (loss) income $(432,479) $856,641  $(873,459) $1,849,348 
    (Loss) earnings per Share - basic $(0.03) $0.07  $(0.07) $0.14 
    (Loss) earnings per Share - diluted $(0.03) $0.07  $(0.07) $0.14 
    Weighted average shares outstanding - basic  12,803,925   13,079,302   12,828,428   13,137,522 
    Weighted average shares outstanding - diluted  12,803,925   13,081,158   12,828,428   13,162,056 


    BOGOTA FINANCIAL CORP.
    SELECTED RATIOS
    (unaudited)
     
      At or For the Three Months  At or for the Six Months 
      Ended June 30,  Ended June 30, 
      2024  2023  2024  2023 
    Performance Ratios (1):                
    (Loss) return on average assets (2)  (0.18)%  0.37%  (0.18)%  0.40%
    (Loss) return on average equity (3)  (1.32)%  2.46%  (1.32)%  2.68%
    Interest rate spread (4)  0.76%  1.57%  0.68%  1.61%
    Net interest margin (5)  1.24%  1.96%  1.20%  2.01%
    Efficiency ratio (6)  122.28%  79.36%  122.87%  76.18%
    Average interest-earning assets to average interest-bearing liabilities  114.12%  116.72%  114.56%  117.09%
    Net loans to deposits  106.74%  107.52%  113.07%  107.52%
    Average equity to average assets (7)  13.48%  14.94%  14.71%  14.82%
    Capital Ratios:                
    Tier 1 capital to average assets          13.52%  15.96%
    Asset Quality Ratios:                
    Allowance for credit losses as a percent of total loans          0.39%  0.39%
    Allowance for credit losses as a percent of non-performing loans          21.20%  21.04%
    Net charge-offs to average outstanding loans during the period          0.00%  0.00%
    Non-performing loans as a percent of total loans          1.82%  1.87%
    Non-performing assets as a percent of total assets          1.33%  1.42%


    (1)Certain performance ratios for the three and six months ended June 30, 2024 and 2023 are annualized.
    (2)Represents net (loss) income divided by average total assets.
    (3)Represents net (loss) income 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 2024 and 2023.
    (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 2024 and 2023.
    (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 June 30, 2024 and December 31, 2023:

      June 30,  December 31, 
      2024  2023 
      (unaudited) 
    Real estate:        
    Residential First Mortgage $475,726,924  $486,052,422 
    Commercial Real Estate  110,832,807   99,830,514 
    Multi-Family Real Estate  75,230,316   75,612,566 
    Construction  38,492,041   49,302,040 
    Commercial and Industrial  10,067,071   6,658,370 
    Consumer  43,909   18,672 
    Total loans  710,393,068   717,474,584 
    Allowance for credit losses  (2,747,950)  (2,785,949)
    Net loans $707,645,118  $714,688,635 
             

    The following tables set forth the distribution of total deposit accounts, by account type, at the dates indicated (unaudited).

      At June 30,  At December 31, 
      2024  2023 
      Amount  Percent  Average Rate  Amount  Percent  Average Rate 
                             
      (unaudited) 
    Noninterest bearing demand accounts $33,345,648   5.14%  % $30,555,546   4.89%  %
    NOW accounts  44,855,584   6.91%  2.29   41,320,723   6.61%  1.90 
    Money market accounts  12,619,901   1.94%  0.29   14,641,000   2.34%  0.30 
    Savings accounts  45,698,159   7.04%  1.81   45,554,964   7.28%  1.76 
    Certificates of deposit  512,600,581   78.97%  4.38   493,274,767   78.88%  4.00 
    Total $649,119,873   100.00%  3.75% $625,347,000   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 June 30, 
      2024  2023 
      Average Balance  Interest and Dividends  Yield/ Cost  Average Balance  Interest and Dividends  Yield/ Cost 
      (Dollars in thousands) 
    Assets: (unaudited) 
    Cash and cash equivalents $8,644  $127   5.90% $12,449  $149   4.80%
    Loans  710,058   8,299   4.70%  712,201   8,142   4.59%
    Securities  185,497   1,860   4.01%  146,225   1,017   2.78%
    Other interest-earning assets  8,689   188   8.66%  6,358   99   6.26%
    Total interest-earning assets  912,888   10,474   4.61%  877,233   9,407   4.30%
                             
    Non-interest-earning assets  58,933           54,156         
    Total assets $971,821          $931,389         
    Liabilities and equity:                        
    NOW and money market accounts $67,687  $329   1.96% $88,256  $355   1.61%
    Savings accounts  44,093   205   1.87%  48,875   92   0.75%
    Certificates of deposit (1)  517,882   5,720   4.44%  493,986   3,764   3.06%
    Total interest-bearing deposits  629,662   6,254   3.99%  631,117   4,211   2.68%
                             
    Federal Home Loan Bank advances (1)  170,295   1,476   3.49%  120,485   903   3.01%
    Total interest-bearing liabilities  799,957   7,730   3.89%  751,602   5,114   2.73%
    Non-interest-bearing deposits  39,162           38,841         
    Other non-interest-bearing liabilities  1,654           1,768         
    Total liabilities  840,773           792,211         
                             
    Total equity  131,048           139,178         
    Total liabilities and equity $971,821          $931,389         
    Net interest income     $2,744          $4,293     
    Interest rate spread (2)          0.72%          1.57%
    Net interest margin (3)          1.21%          1.96%
    Average interest-earning assets to average interest-bearing liabilities  114.12%          116.72%        


    1.Cash flow hedges are used to manage interest rate risk. During the three months ended June 30, 2024 and 2023, the net effect on interest expense on the Federal Home Loan Bank advances and certificates of deposit was a reduced expense of $461,000 and $92,000, 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.


      Six Months Ended June 30, 
      2024  2023 
      Average Balance  Interest and Dividends  Yield/ Cost  Average Balance  Interest and Dividends  Yield/ Cost 
      (Dollars in thousands) 
    Assets:                        
    Cash and cash equivalents $8,505  $276   6.50% $10,634  $254   4.82%
    Loans  711,744   16,507   4.64%  715,066   15,841   4.45%
    Securities  176,081   3,389   3.85%  154,049   2,113   2.74%
    Other interest-earning assets  8,395   363   8.65%  5,851   216   7.40%
    Total interest-earning assets  904,725   20,535   4.54%  885,600   18,424   4.18%
    Non-interest-earning assets  59,313           54,482         
    Total assets $964,038          $940,082         
    Liabilities and equity:                        
    NOW and money market accounts $68,569  $664   1.95% $100,419  $735   1.48%
    Savings accounts  43,720   403   1.85%  51,233   162   0.64%
    Certificates of deposit (1)  517,189   11,157   4.34%  498,652   7,029   2.84%
    Total interest-bearing deposits  629,478   12,224   3.91%  650,304   7,926   2.46%
    Federal Home Loan Bank advances (1)  160,282   2,916   3.66%  106,061   1,680   3.19%
    Total interest-bearing liabilities  789,760   15,140   3.86%  756,365   9,606   2.56%
    Non-interest-bearing deposits  38,425           38,266         
    Other non-interest-bearing liabilities  2,763           6,146         
    Total liabilities  830,948           800,777         
    Total equity  133,090           139,305         
    Total liabilities and equity $964,038          $940,082         
    Net interest income     $5,395          $8,818     
    Interest rate spread (2)          0.68%          1.61%
    Net interest margin (3)          1.20%          2.01%
    Average interest-earning assets to average interest-bearing liabilities  114.56%          117.09%        


    1.Cash flow hedges are used to manage interest rate risk. During the six months ended June 30, 2024 and 2023, the net effect on interest expense on the Federal Home Loan Bank advances and certificates of deposit was a reduced expense of $749,000 and $139,000, 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 June 30, 2024  Six Months Ended June 30, 2024 
      Compared to  Compared to 
      Three Months Ended June 30, 2023  Six Months Ended June 30, 2023 
      Increase (Decrease) Due to  Increase (Decrease) Due to 
      Volume  Rate  Net  Volume  Rate  Net 
      (In thousands) 
    Interest income: (unaudited) 
    Cash and cash equivalents $(169) $147  $(22) $(122) $144  $22 
    Loans receivable  (158)  315   157   (201)  867   666 
    Securities  318   525   843   333   943   1,276 
    Other interest earning assets  43   46   89   106   41   147 
    Total interest-earning assets  35   1,032   1,067   115   1,996   2,111 
                             
    Interest expense:                        
    NOW and money market accounts  (331)  305   (26)  (507)  436   (71)
    Savings accounts  (60)  173   113   (72)  313   241 
    Certificates of deposit  189   1,767   1,956   271   3,857   4,128 
    Federal Home Loan Bank advances  413   160   573   959   277   1,236 
    Total interest-bearing liabilities  211   2,405   2,616   652   4,882   5,534 
    Net decrease in net interest income $(176) $(1,373) $(1,549) $(537) $(2,886) $(3,423)
     

    Contacts
    Kevin Pace – President & CEO, 201-862-0660 ext. 1110


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