Financial Position - Total assets decreased by $45.7 million, or 4.7%, from $971.5 million at December 31, 2024, to $925.8 million at September 30, 2025[91]. - Total liabilities decreased by $49.1 million, or 5.9%, to $785.1 million as of September 30, 2025, from $834.2 million as of December 31, 2024[98]. - Stockholders' equity increased by $3.4 million to $140.7 million, primarily due to net income of $1.4 million[102]. - The company reported a capital ratio of 15.42% as of September 30, 2025, exceeding the 9% requirement to be considered "well capitalized" under regulatory guidelines[152]. - The company exceeded all applicable regulatory capital requirements as of September 30, 2025, and is considered a qualifying community bank[152]. Cash and Liquidity - Cash and cash equivalents decreased by $21.0 million, or 40.2%, to $31.2 million at September 30, 2025, from $52.2 million at December 31, 2024[92]. - Cash and cash equivalents totaled $31.2 million, while available-for-sale securities amounted to $160.7 million as of September 30, 2025[150]. - The company’s liquidity position is monitored daily, ensuring sufficient funds to meet current funding commitments[151]. - The company had the ability to borrow up to $234.1 million from the Federal Home Loan Bank of New York, with $119.4 million outstanding as of September 30, 2025[148]. Loan Performance - Net loans decreased by $42.5 million, or 6.0%, to $669.2 million at September 30, 2025, from $711.7 million at December 31, 2024[94]. - Delinquent loans increased by $7.5 million to $21.8 million, or 3.2% of total loans, at September 30, 2025, compared to 2.0% at December 31, 2024[95]. - The allowance for credit losses was 0.38% of total loans at September 30, 2025, compared to 0.37% at December 31, 2024[95]. - Provision for credit losses recorded a recovery of $50,000 compared to no provision in the prior year, due to lower loan balances[121]. Income and Expenses - Net income increased by $822,000 to $455,000 for the three months ended September 30, 2025, compared to a net loss of $367,000 for the same period in 2024[112]. - For the nine months ended September 30, 2025, net income increased by $2.7 million to $1.4 million, primarily due to a $3.1 million increase in net interest income[125]. - Non-interest income decreased by $6,000, or 1.8%, to $321,000, impacted by the absence of loan sale gains in 2025[122]. - Non-interest income for the nine months increased by $612,000, or 65.9%, to $1.5 million, largely due to bank-owned life insurance income[135]. - Non-interest expense increased by $133,000, or 3.7%, with professional fees rising by $113,000, or 45.6%[123]. - Non-interest expense for the nine months increased by $478,000, or 4.4%, with occupancy and equipment costs rising by $833,000, or 74.4%[136]. - Income tax expense increased by $326,000 to an expense of $73,000, driven by a $1.1 million increase in pre-tax income[124]. Interest Income and Expense - Net interest income rose by $1.2 million, contributing to the overall increase in net income[112]. - Interest income for the three months ended September 30, 2025, was $10.6 million, reflecting a slight increase of $8,000 or 0.1% compared to the same period in 2024[113]. - Interest income on cash and cash equivalents increased by $41,000, or 29.7%, to $179,000 due to a $6.5 million increase in the average balance[114]. - Interest income on loans decreased by $168,000, or 2.0%, as the average balance fell by $28.6 million to $683.0 million[115]. - Interest income on securities increased by $206,000, or 10.9%, due to a 141 basis point increase in average yield, from 4.05% to 5.46%[116]. - Interest expense decreased by $1.2 million, or 15.4%, from $8.0 million to $6.7 million, attributed to lower costs on certificates of deposit and lower borrowing balances[117]. - Net interest income increased by $1.2 million, or 46.6%, to $3.9 million, reflecting a 64 basis point increase in net interest rate spread to 1.30%[120]. - The interest rate spread increased to 1.30% for the three months ended September 30, 2025, compared to 0.66% for the same period in 2024[105]. - The net interest margin improved to 1.80% for the three months ended September 30, 2025, up from 1.15% in 2024[105]. Interest Rate Sensitivity - As of September 30, 2025, the net portfolio value (NPV) decreased by $45,353 thousand (34.67%) under a 400 basis point increase in interest rates, resulting in an NPV ratio of 10.20%[143]. - The estimated change in net interest income over one year indicates a decrease of 15.44% with a 400 basis point increase in interest rates[146]. - The NPV ratio is projected to increase to 18.08% with a 400 basis point decrease in interest rates, reflecting a $46,981 thousand increase in NPV[143].

Financial Performance - Net income for Q3 2025 was $455,000, or $0.04 per share, compared to a net loss of $367,000 in Q3 2024, marking a significant turnaround [2]. - For the nine months ended September 30, 2025, net income increased to $1.4 million from a net loss of $1.2 million in the same period last year, driven by a one-time death benefit of approximately $543,000 [20]. - The net income for the three months ended September 30, 2025, was $454,625, a significant recovery from a net loss of $366,960 in the same period of 2024 [47]. - Total stockholders' equity increased by $3.4 million to $140.7 million, primarily due to net income of $1.4 million [38]. Asset and Liability Management - Total assets decreased by $45.7 million, or 4.7%, to $925.8 million as of September 30, 2025, primarily due to a reduction in cash and loans [6]. - Total liabilities decreased by $49.1 million, or 5.9%, to $785.1 million at September 30, 2025, primarily due to a $52.8 million decrease in borrowings [36]. - Total assets decreased from $974,977 thousand in 2024 to $924,870 thousand in 2025, a decline of approximately 5.1% [55]. - Total liabilities decreased from $838,335 thousand in 2024 to $785,439 thousand in 2025, a decline of approximately 6.3% [55]. Loan and Deposit Trends - Net loans decreased by $42.5 million, or 6.0%, to $669.2 million, mainly due to declines in residential mortgages and construction loans [6]. - Total loans decreased to $671,771,935 as of September 30, 2025, from $714,337,185 at December 31, 2024, reflecting a decline of 5.9% [53]. - Total deposits increased by $4.6 million, or 0.7%, to $646.8 million, supported by a rise in certificates of deposit and savings accounts [6]. - Delinquent loans increased by $7.5 million to $21.8 million, or 3.24% of total loans, at September 30, 2025 [35]. Interest Income and Expense - Net interest income rose by $1.2 million, or 46.6%, to $3.9 million for Q3 2025, reflecting a 64-basis point increase in the net interest rate spread [15]. - Interest expense decreased by $1.2 million, or 15.4%, to $6.7 million for Q3 2025, attributed to lower costs on deposits and reduced borrowings [12]. - Net interest income increased to $3,894,039 for the three months ended September 30, 2025, compared to $2,657,328 in 2024, representing a growth of 46.4% [47]. - The total interest expense for the three months ended September 30, 2025, was $6,733,494, down from $7,962,934 in 2024, reflecting a decrease of 15.4% [47]. Non-Interest Income and Expenses - Non-interest income rose by $612,000, or 65.9%, to $1.5 million for the nine months ended September 30, 2025, from $930,000 for the same period in 2024 [31]. - Non-interest expense increased by $478,000, or 4.4%, for the nine months ended September 30, 2025, compared to the same period in 2024 [32]. Credit Quality - The allowance for credit losses as a percent of total loans was 0.38% as of September 30, 2025, compared to 0.39% in 2024, indicating stable asset quality [49]. - Non-performing loans as a percent of total loans increased to 3.06% as of September 30, 2025, from 1.94% in 2024, suggesting a rise in credit risk [49]. - The Company recorded a recovery of credit losses of $130,000 for the nine months ended September 30, 2025, compared to a provision for credit losses of $70,000 for the same period in 2024 [30]. Regulatory and Strategic Actions - The company received regulatory approval for a stock buyback program of up to 237,590 shares, representing approximately 5% of its outstanding common stock [3].

TEANECK, N.J., Nov. 03, 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 September 30, 2025 of $455,000, or $0.04 per basic and diluted share, compared to a net loss of $367,000, or $0.03 per basic and diluted share, for the comparable prior year period. The Company reported net income for the nine months ended September 30, 2025 of $1.4 million, or $0.11 per basic and dilu ...

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents Bogota Financial Corp.'s unaudited consolidated financial statements, offering a quantitative overview of its performance and financial position for the periods ended June 30, 2025 [Consolidated Statements of Financial Condition](index=4&type=section&id=Consolidated%20Statements%20of%20Financial%20Condition) Total assets decreased to **$921.8 million** at June 30, 2025, primarily due to reduced cash and net loans, while liabilities also fell and equity slightly increased Key Balance Sheet Items (in thousands) | Account | June 30, 2025 | December 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $20,334 | $52,232 | (61.1)% | | Loans, net | $693,211 | $711,716 | (2.6)% | | Securities available for sale | $144,602 | $140,307 | 3.1% | | **Total Assets** | **$921,835** | **$971,490** | **(5.1)%** | | Total deposits | $628,230 | $642,188 | (2.2)% | | FHLB advances (short & long term) | $135,944 | $172,173 | (21.0)% | | **Total Liabilities** | **$783,395** | **$834,201** | **(6.1)%** | | **Total Stockholders' Equity** | **$138,440** | **$137,289** | **0.8%** | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) The company achieved net income of **$224 thousand** in Q2 2025 and **$955 thousand** for the six months, a significant turnaround from prior year losses, driven by higher net interest income Key Income Statement Data (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $3,695 | $2,744 | $7,288 | $5,395 | | Provision (Recovery) for Credit Losses | $0 | $35 | ($80) | $70 | | Non-interest Income | $332 | $303 | $1,221 | $602 | | Non-interest Expense | $3,855 | $3,726 | $7,714 | $7,369 | | **Net Income (Loss)** | **$224** | **($432)** | **$955** | **($873)** | | **EPS - diluted** | **$0.02** | **($0.03)** | **$0.08** | **($0.07)** | [Consolidated Statements of Comprehensive Income (Loss)](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20%28Loss%29) The company reported a comprehensive loss of **$81 thousand** in Q2 2025, but a comprehensive income of **$1.0 million** for the six-month period, a significant improvement year-over-year Comprehensive Income (Loss) Summary (in thousands) | Period | Net Income (Loss) | Other Comprehensive (Loss) Income | Comprehensive (Loss) Income | | :--- | :--- | :--- | :--- | | **Three Months Ended June 30, 2025** | $224 | ($306) | ($81) | | **Three Months Ended June 30, 2024** | ($432) | $784 | $351 | | **Six Months Ended June 30, 2025** | $955 | $55 | $1,010 | | **Six Months Ended June 30, 2024** | ($873) | $483 | ($391) | [Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Stockholders%27%20Equity) Stockholders' equity increased to **$138.4 million** at June 30, 2025, driven by net income, partially offset by stock repurchases and comprehensive loss - Stockholders' equity increased to **$138.4 million** at June 30, 2025, from **$137.3 million** at January 1, 2025[18](index=18&type=chunk) - Key activities affecting equity in the first six months of 2025 included net income of **$955,342**, stock-based compensation of **$446,615**, and stock repurchases of **$402,792**[18](index=18&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities was **$1.9 million** for the six months ended June 30, 2025, with investing activities providing **$16.4 million** and financing activities using **$50.2 million**, resulting in a **$31.9 million** net decrease in cash Cash Flow Summary (Six Months Ended June 30, in thousands) | Cash Flow Category | 2025 | 2024 | | :--- | :--- | :--- | | Net cash from operating activities | $1,904 | ($1,230) | | Net cash from investing activities | $16,372 | ($41,156) | | Net cash from financing activities | ($50,174) | $35,048 | | **Net decrease in cash** | **($31,899)** | **($7,338)** | [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies, the composition of the securities and loan portfolios, including a decrease in total loans, and information on derivative instruments used for interest rate risk hedging - The available-for-sale securities portfolio increased to **$144.6 million** at June 30, 2025, from **$140.3 million** at Dec 31, 2024. The portfolio consists mainly of mortgage-backed securities and corporate bonds[37](index=37&type=chunk) - Total loans decreased to **$695.8 million** at June 30, 2025, from **$714.3 million** at Dec 31, 2024, with residential first mortgages being the largest category at **$458.2 million**[42](index=42&type=chunk) - Non-performing loans were **$13.9 million** at June 30, 2025, slightly down from **$14.0 million** at year-end 2024. The allowance for credit losses was **$2.59 million**[49](index=49&type=chunk)[42](index=42&type=chunk) - The company uses interest rate swaps with notional amounts of **$65.0 million** (cash flow hedges) and **$60.0 million** (fair value hedges) to manage interest rate risk on FHLB advances, deposits, and loans[67](index=67&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial condition and results, highlighting decreased assets and liabilities, significant net income improvement driven by higher net interest income, and stable asset quality - Total assets decreased by **$49.7 million (5.1%)** to **$921.8 million** at June 30, 2025, from year-end 2024, mainly from a **$31.9 million** drop in cash and an **$18.5 million** decrease in net loans[88](index=88&type=chunk) - Total liabilities fell by **$50.8 million (6.1%)** to **$783.4 million**, driven by a **$36.2 million** decrease in borrowings and a **$14.0 million** decrease in deposits[93](index=93&type=chunk) - For Q2 2025, net income was **$224 thousand**, a significant turnaround from a net loss of **$432 thousand** in Q2 2024, driven by a **$951 thousand** increase in net interest income. The net interest margin improved to **1.74%** from **1.21%** YoY[107](index=107&type=chunk)[115](index=115&type=chunk) - For the six months ended June 30, 2025, net income was **$955 thousand**, compared to a net loss of **$873 thousand** in the prior year period. The result was boosted by a **$1.9 million** increase in net interest income and a one-time BOLI death benefit of approximately **$543 thousand**[121](index=121&type=chunk) - Asset quality remained stable, with non-performing assets at **$13.9 million (1.5% of total assets)** at June 30, 2025. The allowance for credit losses was **0.37%** of total loans[91](index=91&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=41&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages interest rate risk using NPV and NII analyses, with a **+200 bp** shock scenario showing a **17.83%** NPV decrease and **3.47%** NII decrease, both within policy limits Net Portfolio Value (NPV) Sensitivity Analysis (June 30, 2025) | Basis Point Change | NPV (in thousands) | Percent Change | | :--- | :--- | :--- | | +400 bp | $82,457 | (34.92)% | | +200 bp | $104,106 | (17.83)% | | 0 | $126,693 | 0.00% | | -200 bp | $148,859 | 17.50% | Net Interest Income (NII) Sensitivity Analysis (Year One) | Basis Point Change | Change in NII (%) | | :--- | :--- | | +400 bp | (6.97)% | | +200 bp | (3.47)% | | 0 | 0.00% | | -200 bp | 2.87% | [Controls and Procedures](index=45&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal controls over financial reporting during the quarter - Management concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by this report[150](index=150&type=chunk) - There were no changes in the company's internal control over financial reporting during the second quarter of 2025 that have materially affected, or are reasonably likely to materially affect, these controls[151](index=151&type=chunk) [PART II. OTHER INFORMATION](index=46&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=46&type=section&id=Item%201.%20Legal%20Proceedings) As of June 30, 2025, the company was not involved in any material legal proceedings beyond routine business matters - The company reports no pending legal proceedings, other than routine proceedings in the ordinary course of business, that would be material to its financial condition or results of operations[153](index=153&type=chunk) [Risk Factors](index=46&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024, have been reported - No material changes in the risk factors from those disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, have been reported[154](index=154&type=chunk) [Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of Equity Securities](index=46&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20Use%20of%20Proceeds%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company reported no unregistered sales of equity securities, use of proceeds, or issuer purchases of equity securities for the period - The company reported "None" for this item[155](index=155&type=chunk) [Defaults Upon Senior Securities](index=46&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities - The company reported "None" for this item[156](index=156&type=chunk) [Mine Safety Disclosures](index=46&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - This item is reported as "Not applicable"[157](index=157&type=chunk) [Other Information](index=46&type=section&id=Item%205.%20Other%20Information) No directors or executive officers adopted or terminated Rule 10b5-1 trading plans or other non-Rule 10b5-1 trading arrangements during Q2 2025 - No directors or executive officers adopted or terminated a Rule 10b5-1 trading plan or any "non-Rule 10b5-1 trading arrangement" during the three months ended June 30, 2025[158](index=158&type=chunk) [Exhibits](index=47&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including corporate documents, CEO/CFO certifications, and iXBRL data files - The filing includes CEO and CFO certifications under Sections 302 and 906 of the Sarbanes-Oxley Act, as well as financial statements formatted in iXBRL[160](index=160&type=chunk)

Core Viewpoint - Bogota Financial Corp. has received regulatory approval for a stock repurchase program to buy back up to 237,590 shares, representing approximately 5% of its outstanding common stock [1] Group 1: Stock Repurchase Program - The repurchase program is the sixth initiated by the Company [1] - Shares may be repurchased through open market or private transactions, or under a trading plan compliant with SEC Rule 10b5-1 [2] - The program has no expiration date and can be suspended, terminated, or modified at any time [3] - There is no obligation for the Company to repurchase a specific number of shares, and the timing and amount will depend on various factors including market conditions and the Company's financial performance [3] Group 2: Company Overview - Bogota Financial Corp. is a Maryland corporation and the mid-tier holding company for Bogota Savings Bank, which has been serving customers in New Jersey since 1893 [4] - The Bank operates seven offices in New Jersey and has a loan production office in Spring Lake [4]

Core Viewpoint - Bogota Financial returned to profitability in Q2 2025, reporting a net income of $224,000, a significant turnaround from a net loss of $432,000 in the same period last year, primarily driven by a 34.7% increase in net interest income and reduced interest expenses [1][5][6] Financial Performance - Earnings per share (EPS) improved to $0.02 from a loss of $0.03 year-over-year [2] - Net interest income rose to $3.7 million from $2.7 million, reflecting a 34.7% increase [2][5] - Total assets decreased by 5.1% to $921.8 million, while total deposits shrank to $628.2 million [2][8] - The efficiency ratio improved to 95.7%, down from 122.3% in Q2 2024, indicating better cost management [6] Loan and Deposit Trends - The bank experienced a decline in net loans, with residential first mortgage loans falling by $14.5 million and construction loans dropping by $17.4 million [7] - Delinquent loans increased to $20.4 million, representing 2.94% of total loans, up from $14.3 million at year-end 2024 [10] - Deposits decreased by 2.2%, with certificates of deposit falling by $11.5 million, while savings accounts saw a modest increase of $4.6 million [8][9] Risk Management and Capital Position - The allowance for credit losses remained steady at 0.37% of total loans, with no loans charged off during the quarter [10][12] - Tier 1 capital to average assets was reported at 15.32%, well above required levels, and average equity as a percentage of total assets increased to 14.96% [11] - The bank has no exposure to commercial real estate loans backed by office properties, focusing instead on residential and multi-family lending [13] Strategic Focus and Outlook - The company aims to manage its loan portfolio for quality and yield, with a focus on growing consumer and commercial deposits [4][14] - Management anticipates an increase in loan demand later in the year and into early 2026, emphasizing the importance of maintaining strict credit standards [14][15]

[Executive Summary & Company Overview](index=1&type=section&id=Executive%20Summary%20%26%20Company%20Overview) [Overall Financial Performance](index=1&type=section&id=Overall%20Financial%20Performance) Bogota Financial Corp. reported a significant turnaround from a net loss in the prior year to net income for both the three and six months ended June 30, 2025, driven by increased net interest income and a one-time death benefit for the six-month period | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change (YoY) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change (YoY) | | :----------------------------- | :----------------------------- | :----------------------------- | :----------- | :----------------------------- | :----------------------------- | :----------- | | Net Income (Loss) | $224,000 | $(432,000) | +$656,000 | $955,000 | $(873,000) | +$1,828,000 | | EPS (Basic & Diluted) | $0.02 | $(0.03) | +$0.05 | $0.08 | $(0.07) | +$0.15 | - Income for the six months ended June 30, **2025**, included a one-time death benefit from a bank-owned life insurance policy of approximately **$543,000**[2](index=2&type=chunk) [CEO Commentary & Strategic Initiatives](index=1&type=section&id=CEO%20Commentary%20%26%20Strategic%20Initiatives) CEO Kevin Pace noted that the first half of 2025 met projections, with steady loan demand expected to increase later in the year, focusing on commercial portfolio growth, risk limitation, and reducing the cost of funds through deposit growth, while enhancing shareholder value via stock buybacks - Management expects an uptick in loan demand later in **2025** and into early **2026**[4](index=4&type=chunk) - Key initiatives include continued growth in the commercial portfolio, limiting risk to certain markets and property types, and increasing consumer and commercial deposits to reduce the cost of funds[4](index=4&type=chunk) | Metric | Since IPO (Cumulative) | | :----------------------------------- | :--------------------- | | Shares Reduced | 1,653,571 | | Tangible Book Value per Minority Share | From $22.04 to $29.10 | [Company Profile](index=6&type=section&id=Company%20Profile) Bogota Financial Corp. is the mid-tier holding company for Bogota Savings Bank, a New Jersey chartered stock savings bank established in 1893, operating seven offices and a loan production office across northern and central New Jersey - Bogota Financial Corp. is the mid-tier holding company for Bogota Savings Bank, a New Jersey chartered stock savings bank[37](index=37&type=chunk) - The Bank operates from **seven offices** in New Jersey and a loan production office in Spring Lake, New Jersey[37](index=37&type=chunk) [Forward-Looking Statements](index=6&type=section&id=Forward-Looking%20Statements) The report includes forward-looking statements subject to various risks and uncertainties, such as competitive pressures, interest rate changes, inflation, economic conditions, real estate market values, liquidity, and regulatory changes, which the Company does not undertake to revise - Forward-looking statements are subject to risks including competitive pressures, interest rate environment changes, inflation, general economic conditions, real estate market values, liquidity, and regulatory changes[38](index=38&type=chunk) - The Company does not commit to revising these forward-looking statements after the press release date[39](index=39&type=chunk) [Financial Highlights (Balance Sheet & Key Metrics)](index=1&type=section&id=Financial%20Highlights%20(Balance%20Sheet%20%26%20Key%20Metrics)) [Balance Sheet Summary](index=1&type=section&id=Balance%20Sheet%20Summary) As of June 30, 2025, total assets decreased primarily due to reductions in cash and loans, while securities saw a slight increase, with total liabilities also decreasing due to lower deposits and FHLB advances, and stockholders' equity increasing from net income | Balance Sheet Item | June 30, 2025 (Millions) | Dec 31, 2024 (Millions) | Change (Millions) | % Change | | :---------------------- | :----------------------- | :---------------------- | :---------------- | :------- | | Total Assets | $921.8 | $971.5 | $(49.7) | -5.1% | | Cash & Cash Equivalents | $20.3 | $52.2 | $(31.9) | -61.1% | | Securities | $144.6 | $140.3 | $4.3 | +3.1% | | Net Loans | $693.2 | $711.7 | $(18.5) | -2.6% | | Total Deposits | $628.2 | $642.2 | $(14.0) | -2.2% | | FHLB Advances | $135.9 | $172.2 | $(36.2) | -21.0% | | Total Liabilities | $783.4 | $834.2 | $(50.8) | -6.1% | | Total Stockholders' Equity | $138.4 | $137.3 | $1.2 | +0.9% | - The decrease in cash and cash equivalents was largely due to using excess funds to pay down borrowings[5](index=5&type=chunk) - Net loans decreased primarily due to decreases in residential mortgages and construction loans, reflecting lower demand in these segments[5](index=5&type=chunk)[33](index=33&type=chunk) - The average rate on deposits decreased by **16 basis points** to **3.75%** for the first half of **2025**, driven by lower interest rates and a reduced proportion of higher-costing certificates of deposit[5](index=5&type=chunk) [Key Financial Ratios](index=9&type=section&id=Key%20Financial%20Ratios) Bogota Financial Corp. demonstrated improved performance and capital ratios for the periods ended June 30, 2025, compared to the prior year, with a significantly improved efficiency ratio and mixed asset quality trends showing increased non-performing loans but decreased non-performing assets | Ratio | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Return (loss) on average assets | 0.02% | (0.18)% | 0.10% | (0.18)% | | Return (loss) on average equity | 0.16% | (1.32)% | 0.10% | (1.32)% | | Interest rate spread | 1.20% | 0.72% | 1.15% | 0.68% | | Net interest margin | 1.74% | 1.21% | 1.70% | 1.20% | | Efficiency ratio | 95.73% | 122.28% | 90.66% | 122.87% | | Average equity to average assets | 15.02% | 13.48% | 14.88% | 14.71% | | Tier 1 capital to average assets | N/A | N/A | 15.32% | 13.52% | | Allowance for credit losses as % of total loans | N/A | N/A | 0.37% | 0.39% | | Non-performing loans as % of total loans | N/A | N/A | 2.00% | 1.82% | | Non-performing assets as % of total assets | N/A | N/A | 1.50% | 1.33% | - The efficiency ratio significantly improved, indicating better cost management relative to income generation[46](index=46&type=chunk) - Delinquent loans increased to **$20.4 million** (**2.94%** of total loans) at June 30, **2025**, primarily due to one well-secured commercial real estate loan of **$7.1 million**[34](index=34&type=chunk) - Non-performing assets slightly decreased to **$13.9 million** (**1.50%** of total assets) at June 30, **2025**[34](index=34&type=chunk) [Income Statement Analysis](index=2&type=section&id=Income%20Statement%20Analysis) [Three Months Ended June 30, 2025 vs. 2024](index=2&type=section&id=Three%20Months%20Ended%20June%2030%2C%202025%20vs.%202024) For the three months ended June 30, 2025, Bogota Financial Corp. reported a net income of $224,000, a substantial increase from a net loss of $432,000 in the prior year, primarily driven by a significant increase in net interest income, partially offset by a decrease in income tax benefit | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change (YoY) | | :----------------- | :--------------------------- | :--------------------------- | :----------- | | Net Income (Loss) | $224,000 | $(432,000) | +$656,000 | | Net Interest Income | $3.7 million | $2.7 million | +$951,000 | | Income Tax Benefit | $(53,000) | $(281,000) | +$228,000 | - Net interest income increased by **34.7%** due to a **48 basis point** increase in net interest rate spread (to **1.20%**) and a **53 basis point** increase in net interest margin (to **1.74%**)[14](index=14&type=chunk) [Interest Income (3 Months)](index=2&type=section&id=Interest%20Income%20(3%20Months)) Total interest income remained relatively stable, with a slight increase of $31,000, resulting from mixed performance across asset categories: a decrease in interest income from cash and loans, largely offset by an increase from securities due to a balance sheet restructuring in Q4 2024 | Source | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change (YoY) | | :---------------------- | :--------------------------- | :--------------------------- | :----------- | | Total Interest Income | $10.5 million | $10.5 million | +$31,000 | | Cash & Cash Equivalents | $106,000 | $127,000 | $(21,000) | | Loans | $8.292 million | $8.299 million | $(7,000) | | Securities | $1.946 million | $1.860 million | +$86,000 | - Interest income on securities increased due to a **151 basis point** increase in average yield, despite a **$44.4 million** decrease in average balance, reflecting the **Q4 2024** sale of lower-yielding securities and reinvestment into higher-yielding ones[10](index=10&type=chunk) [Interest Expense (3 Months)](index=2&type=section&id=Interest%20Expense%20(3%20Months)) Total interest expense decreased by $920,000, primarily due to lower average balances and costs on deposits, as well as reduced balances on borrowings, with hedges also contributing to a reduction in interest expense on FHLB advances and brokered deposits | Source | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change (YoY) | | :---------------------- | :--------------------------- | :--------------------------- | :----------- | | Total Interest Expense | $6.8 million | $7.7 million | $(920,000) | | Interest-Bearing Deposits | $5.5 million | $6.3 million | $(730,000) | | FHLB Advances | $1.3 million | $1.5 million | $(190,000) | - Interest expense on deposits decreased due to a **32 basis point** reduction in the average cost of deposits (to **3.67%**) and a shift in deposit composition away from certificates of deposit[12](index=12&type=chunk) - Hedges reduced interest expense on FHLB advances and brokered deposits by **$186,000** during the quarter[11](index=11&type=chunk) [Provision for Credit Losses (3 Months)](index=2&type=section&id=Provision%20for%20Credit%20Losses%20(3%20Months)) No provision for credit losses was recorded for the three months ended June 30, 2025, compared to a $35,000 provision in the prior year period | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | | :-------------------------- | :--------------------------- | :--------------------------- | | Provision for Credit Losses | $0 | $35,000 | [Non-Interest Income (3 Months)](index=2&type=section&id=Non-Interest%20Income%20(3%20Months)) Non-interest income increased by $29,000, or 9.4%, driven by higher bank-owned life insurance (BOLI) income, increased gain on sale of loans, and higher fee and service charge income | Source | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change (YoY) | | :---------------------- | :--------------------------- | :--------------------------- | :----------- | | Total Non-Interest Income | $332,000 | $303,000 | +$29,000 | | Bank-Owned Life Insurance | +$13,000 | N/A | +6.0% | | Gain on Sale of Loans | +$9,000 | N/A | N/A | | Fee & Service Charge Income | +$11,000 | N/A | N/A | [Non-Interest Expense (3 Months)](index=3&type=section&id=Non-Interest%20Expense%20(3%20Months)) Non-interest expense increased by $129,000, or 3.5%, primarily due to higher professional fees and occupancy and equipment costs related to a lease-buyback transaction, partially offset by reductions in salaries and employee benefits, advertising, and other non-interest expenses | Expense Category | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change (YoY) | | :------------------------ | :--------------------------- | :--------------------------- | :----------- | | Total Non-Interest Expense | N/A | N/A | +$129,000 | | Professional Fees | N/A | N/A | +$112,000 | | Occupancy & Equipment | N/A | N/A | +$274,000 | | Salaries & Employee Benefits | N/A | N/A | $(83,000) | | Advertising | N/A | N/A | $(99,000) | | Other Non-Interest Expense | N/A | N/A | $(78,000) | - Occupancy and equipment costs increased significantly (**74.6%**) due to increased lease expense from a **Q4 2024** lease-buyback transaction[17](index=17&type=chunk) - Salaries and employee benefits decreased due to lower headcount[17](index=17&type=chunk) [Income Tax Expense (3 Months)](index=3&type=section&id=Income%20Tax%20Expense%20(3%20Months)) Income tax expense increased by $229,000, resulting in a smaller benefit of $53,000 for the three months ended June 30, 2025, compared to a $281,000 benefit in the prior year, primarily due to the increase in net income | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change (YoY) | | :----------------- | :--------------------------- | :--------------------------- | :----------- | | Income Tax Benefit | $(53,000) | $(281,000) | +$228,000 | [Six Months Ended June 30, 2025 vs. 2024](index=3&type=section&id=Six%20Months%20Ended%20June%2030%2C%202025%20vs.%202024) For the six months ended June 30, 2025, Bogota Financial Corp. reported a net income of $955,000, a significant improvement from a net loss of $873,000 in the prior year, primarily driven by a substantial rise in net interest income and a one-time death benefit, partially offset by an increase in income tax expense | Metric | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change (YoY) | | :----------------- | :--------------------------- | :--------------------------- | :----------- | | Net Income (Loss) | $955,000 | $(873,000) | +$1.8 million | | Net Interest Income | $7.3 million | $5.4 million | +$1.9 million | | Income Tax Benefit | $(81,000) | $(568,000) | +$487,000 | - Income for the six months included a one-time death benefit of approximately **$543,000** from a bank-owned life insurance policy[19](index=19&type=chunk) - Net interest income increased by **35.1%** due to a **47 basis point** increase in net interest rate spread (to **1.15%**) and a **50 basis point** increase in net interest margin (to **1.70%**)[27](index=27&type=chunk) [Interest Income (6 Months)](index=3&type=section&id=Interest%20Income%20(6%20Months)) Total interest income increased by $893,000, or 4.4%, for the six months ended June 30, 2025, primarily due to higher yields on interest-earning assets, despite a decrease in their average balance, with significant contributions from cash, loans, and securities | Source | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change (YoY) | | :---------------------- | :--------------------------- | :--------------------------- | :----------- | | Total Interest Income | $21.4 million | $20.5 million | +$893,000 | | Cash & Cash Equivalents | $371,000 | $276,000 | +$95,000 | | Loans | $16.9 million | $16.5 million | +$387,000 | | Securities | $3.8 million | $3.4 million | +$390,000 | - Interest income on securities increased due to a **143 basis point** increase in average yield (to **5.28%**), offset by a **$32.9 million** decrease in average balance, a result of the **Q4 2024** balance sheet restructuring[23](index=23&type=chunk) [Interest Expense (6 Months)](index=3&type=section&id=Interest%20Expense%20(6%20Months)) Total interest expense decreased by $1.0 million, or 6.6%, for the six months ended June 30, 2025, mainly due to lower average balances and rates on certificates of deposit and reduced borrowings, with hedges also playing a role in mitigating interest expense | Source | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change (YoY) | | :---------------------- | :--------------------------- | :--------------------------- | :----------- | | Total Interest Expense | $14.1 million | $15.1 million | $(1.0) million | | Interest-Bearing Deposits | $11.3 million | $12.2 million | $(938,000) | | FHLB Advances | $2.85 million | $2.92 million | $(62,000) | - Interest expense on deposits decreased due to a **16 basis point** reduction in the average cost of deposits (to **3.75%**) and a change in deposit composition[25](index=25&type=chunk) - Hedges reduced interest expense on FHLB advances and brokered deposits by **$363,000** during the six months[24](index=24&type=chunk) [Recovery/Provision for Credit Losses (6 Months)](index=5&type=section&id=Recovery%2FProvision%20for%20Credit%20Losses%20(6%20Months)) The company recorded an $80,000 recovery of credit losses for the six months ended June 30, 2025, a positive shift from a $70,000 provision in the comparable prior year period, attributed to a decrease in loans and held-to-maturity securities | Metric | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------- | :--------------------------- | :--------------------------- | | (Recovery) Provision for Credit Losses | $(80,000) | $70,000 | [Non-Interest Income (6 Months)](index=5&type=section&id=Non-Interest%20Income%20(6%20Months)) Non-interest income significantly increased by $619,000, or 102.7%, primarily driven by a death benefit related to a former employee and higher bank-owned life insurance (BOLI) balances, along with increased gains on sale of loans | Source | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change (YoY) | | :---------------------- | :--------------------------- | :--------------------------- | :----------- | | Total Non-Interest Income | $1.2 million | $602,000 | +$619,000 | | Bank-Owned Life Insurance | N/A | N/A | +$564,000 | | Gain on Sale of Loans | N/A | N/A | +$38,000 | - Bank-owned life insurance income increased by **132.0%** due to a death benefit related to a former employee and higher balances[30](index=30&type=chunk) [Non-Interest Expense (6 Months)](index=5&type=section&id=Non-Interest%20Expense%20(6%20Months)) Non-interest expense increased by $345,000, or 4.7%, mainly due to higher professional fees and a significant rise in occupancy and equipment costs from the Q4 2024 lease-buyback transaction, partially offset by reductions in salaries and employee benefits, advertising, and other non-interest expenses | Expense Category | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change (YoY) | | :------------------------ | :--------------------------- | :--------------------------- | :----------- | | Total Non-Interest Expense | N/A | N/A | +$345,000 | | Professional Fees | N/A | N/A | +$114,000 | | Occupancy & Equipment | N/A | N/A | +$574,000 | | Salaries & Employee Benefits | N/A | N/A | $(162,000) | | Advertising | N/A | N/A | $(104,000) | | Other Non-Interest Expense | N/A | N/A | $(102,000) | - Occupancy and equipment costs increased by **77.8%** due to increased lease expense from the **Q4 2024** lease-buyback transaction[31](index=31&type=chunk) - Salaries and employee benefits decreased due to lower headcount[31](index=31&type=chunk) [Income Tax Expense (6 Months)](index=5&type=section&id=Income%20Tax%20Expense%20(6%20Months)) Income tax expense increased by $488,000, resulting in a smaller benefit of $81,000 for the six months ended June 30, 2025, compared to a $568,000 benefit in the prior year, primarily due to the increase in income | Metric | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change (YoY) | | :----------------- | :--------------------------- | :--------------------------- | :----------- | | Income Tax Benefit | $(81,000) | $(568,000) | +$487,000 | [Balance Sheet Analysis](index=5&type=section&id=Balance%20Sheet%20Analysis) [Assets](index=5&type=section&id=Assets) Total assets decreased by $49.7 million, or 5.1%, to $921.8 million at June 30, 2025, primarily due to significant decreases in cash and cash equivalents and net loans, while securities available for sale saw an increase | Asset Category | June 30, 2025 (Millions) | Dec 31, 2024 (Millions) | Change (Millions) | % Change | | :---------------------- | :----------------------- | :---------------------- | :---------------- | :------- | | Total Assets | $921.8 | $971.5 | $(49.7) | -5.1% | | Cash & Cash Equivalents | $20.3 | $52.2 | $(31.9) | -61.1% | | Net Loans | $693.2 | $711.7 | $(18.5) | -2.6% | | Securities AFS | $144.6 | $140.3 | $4.3 | +3.1% | - Net loans decreased due to **$32.0 million** in repayments, partially offset by **$15.5 million** in new production. Residential and construction loans decreased, while commercial real estate and multi-family loans increased[33](index=33&type=chunk) - Demand for residential and construction loans decreased due to the interest rate environment[33](index=33&type=chunk) [Liabilities](index=5&type=section&id=Liabilities) Total liabilities decreased by $50.8 million, or 6.1%, to $783.4 million, mainly driven by decreases in total deposits and Federal Home Loan Bank (FHLB) advances, with long-term borrowings decreasing while short-term borrowings increased | Liability Category | June 30, 2025 (Millions) | Dec 31, 2024 (Millions) | Change (Millions) | % Change | | :---------------------- | :----------------------- | :---------------------- | :---------------- | :------- | | Total Liabilities | $783.4 | $834.2 | $(50.8) | -6.1% | | Total Deposits | $628.2 | $642.2 | $(14.0) | -2.2% | | FHLB Advances | $135.9 | $172.2 | $(36.2) | -21.0% | | Short-Term Borrowings | $40.0 | $29.5 | +$10.5 | +35.6% | | Long-Term Borrowings | $95.9 | $142.7 | $(46.7) | -32.8% | - The decrease in deposits was primarily due to reductions in certificates of deposit, NOW accounts, money market accounts, and noninterest-bearing checking accounts, partially offset by an increase in savings accounts[5](index=5&type=chunk) - At June 30, **2025**, brokered deposits were **$108.0 million** (**17.2%** of deposits) and uninsured deposits represented **9.1%** of total deposits[35](index=35&type=chunk) - Total borrowing capacity at the Federal Home Loan Bank is **$241.3 million**, with **$139.0 million** advanced[35](index=35&type=chunk) [Stockholders' Equity](index=5&type=section&id=Stockholders'%20Equity) Total stockholders' equity increased by $1.2 million to $138.4 million, primarily driven by net income, with the ratio of average stockholders' equity-to-total assets improving to 14.96% from 13.99% at December 31, 2024 | Metric | June 30, 2025 (Millions) | Dec 31, 2024 (Millions) | Change (Millions) | | :----------------------------------- | :----------------------- | :---------------------- | :---------------- | | Total Stockholders' Equity | $138.4 | $137.3 | +$1.2 | | Average Stockholders' Equity-to-Total Assets Ratio | 14.96% | 13.99% | +0.97% | [Loan and Deposit Composition](index=10&type=section&id=Loan%20and%20Deposit%20Composition) The loan portfolio saw shifts with decreases in residential first mortgages and construction loans, while commercial real estate and multi-family real estate loans increased, and certificates of deposit continued to be the largest component of deposits, though their share slightly decreased **Loans Summary:** | Loan Type | June 30, 2025 | Dec 31, 2024 | | :------------------------ | :------------ | :----------- | | Residential First Mortgage | $458,212,962 | $472,747,542 | | Commercial Real Estate | $125,349,129 | $118,008,866 | | Multi-Family Real Estate | $82,118,178 | $74,152,418 | | Construction | $25,766,387 | $43,183,657 | | Commercial and Industrial | $4,282,269 | $6,163,747 | | Consumer | $73,328 | $80,955 | | Total Loans | $695,802,253 | $714,337,185 | **Deposit Distribution:** | Account Type | June 30, 2025 Amount | June 30, 2025 Percent | Dec 31, 2024 Amount | Dec 31, 2024 Percent | | :------------------------ | :------------------- | :-------------------- | :------------------ | :------------------- | | Noninterest bearing demand | $30,696,810 | 4.89% | $32,681,963 | 5.09% | | NOW accounts | $52,611,377 | 8.37% | $55,378,051 | 8.62% | | Money market accounts | $11,677,716 | 1.86% | $13,996,460 | 2.18% | | Savings accounts | $51,419,664 | 8.18% | $46,851,793 | 7.30% | | Certificates of deposit | $481,824,219 | 76.70% | $493,279,775 | 76.81% | | Total | $628,229,786 | 100.00% | $642,188,042 | 100.00% | [Asset Quality](index=5&type=section&id=Asset%20Quality) Asset quality metrics showed an increase in delinquent loans, primarily due to one commercial real estate loan, while non-performing assets slightly decreased, with the allowance for credit losses remaining stable relative to total loans and no charge-offs recorded | Metric | June 30, 2025 | Dec 31, 2024 | | :------------------------------------------- | :------------ | :----------- | | Delinquent Loans | $20.4 million | $14.3 million | | Delinquent Loans as % of Total Loans | 2.94% | N/A | | Non-Performing Assets | $13.9 million | $14.0 million | | Non-Performing Assets as % of Total Assets | 1.50% | N/A | | Allowance for Credit Losses as % of Total Loans | 0.37% | 0.37% | | Allowance for Credit Losses as % of Non-Performing Loans | 18.69% | 18.77% | - The increase in delinquent loans was primarily due to one commercial real estate loan of **$7.1 million**, which is considered well-secured and in the process of collection[34](index=34&type=chunk) - No loans were charged-off during the three or six months ended June 30, **2025** or **2024**[34](index=34&type=chunk) - The Bank has no exposure to commercial real estate loans secured by office space[34](index=34&type=chunk) [Consolidated Financial Statements](index=7&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statements of Financial Condition](index=7&type=section&id=Consolidated%20Statements%20of%20Financial%20Condition) The consolidated statement of financial condition shows a decrease in total assets and liabilities from December 31, 2024, to June 30, 2025, primarily driven by reductions in cash, loans, deposits, and FHLB advances, with stockholders' equity seeing a modest increase | | As of June 30, 2025 | As of December 31, 2024 | | :-------------------------------------------------------------------------------- | :------------------ | :---------------------- | | **Assets** | | | | Cash and cash equivalents | $20,333,555 | $52,232,208 | | Securities available for sale, at fair value | $144,602,468 | $140,307,447 | | Loans, net of allowance for credit losses | $693,211,303 | $711,716,236 | | Total Assets | $921,834,660 | $971,489,884 | | **Liabilities** | | | | Total deposits | $628,229,786 | $642,188,042 | | FHLB advances-short term | $40,000,000 | $29,500,000 | | FHLB advances-long term | $95,944,439 | $142,673,182 | | Total liabilities | $783,394,959 | $834,200,724 | | **Stockholders' Equity** | | | | Total stockholders' equity | $138,439,701 | $137,289,160 | | Total liabilities and stockholders' equity | $921,834,660 | $971,489,884 | [Consolidated Statements of Operations](index=8&type=section&id=Consolidated%20Statements%20of%20Operations) The consolidated statements of operations show a significant improvement in net income for both the three and six months ended June 30, 2025, compared to net losses in the prior year periods, driven by increased net interest income and, for the six-month period, a substantial increase in non-interest income | | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Total interest income | $10,505,164 | $10,474,209 | $21,428,753 | $20,535,396 | | Total interest expense | $6,810,559 | $7,730,495 | $14,140,910 | $15,140,445 | | Net interest income | $3,694,605 | $2,743,714 | $7,287,843 | $5,394,951 | | (Recovery) provision for credit losses | — | $35,000 | $(80,000) | $70,000 | | Total non-interest income | $331,710 | $303,204 | $1,221,082 | $602,282 | | Total non-interest expense | $3,854,502 | $3,725,783 | $7,714,172 | $7,368,874 | | Income (loss) before income taxes | $171,813 | $(713,865) | $874,753 | $(1,441,641) | | Income tax benefit | $(52,582) | $(281,386) | $(80,589) | $(568,182) | | Net income (loss) | $224,395 | $(432,479) | $955,342 | $(873,459) | | Earnings (loss) per Share - basic | $0.02 | $(0.03) | $0.08 | $(0.07) | [Average Balance Sheets and Rate/Volume Analysis](index=11&type=section&id=Average%20Balance%20Sheets%20and%20Rate%2FVolume%20Analysis) [Average Balance Sheets, Yields and Rates (Three Months)](index=11&type=section&id=Average%20Balance%20Sheets%2C%20Yields%20and%20Rates%20(Three%20Months)) For the three months ended June 30, 2025, average interest-earning assets decreased, but the overall yield improved, while average interest-bearing liabilities also decreased with a notable reduction in the cost of deposits, leading to an improved net interest margin and spread | | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | | :------------------------------------------------ | :--------------------------- | :--------------------------- | | Average Interest-Earning Assets (thousands) | $855,994 | $912,888 | | Yield on Interest-Earning Assets (%) | 4.92% | 4.61% | | Average Interest-Bearing Liabilities (thousands) | $734,805 | $799,957 | | Cost of Interest-Bearing Liabilities (%) | 3.72% | 3.89% | | Net Interest Income (thousands) | $3,695 | $2,744 | | Interest Rate Spread (%) | 1.20% | 0.72% | | Net Interest Margin (%) | 1.74% | 1.21% | | Average Interest-Earning Assets to Average Interest-Bearing Liabilities (%) | 116.49% | 114.12% | - The average cost of certificates of deposit decreased from **4.44%** to **4.01%** year-over-year[52](index=52&type=chunk) [Average Balance Sheets, Yields and Rates (Six Months)](index=12&type=section&id=Average%20Balance%20Sheets%2C%20Yields%20and%20Rates%20(Six%20Months)) For the six months ended June 30, 2025, average interest-earning assets decreased, but the yield improved, while average interest-bearing liabilities also decreased with a lower cost of deposits, contributing to a stronger net interest margin and spread | | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------------------------ | :--------------------------- | :--------------------------- | | Average Interest-Earning Assets (thousands) | $865,584 | $904,725 | | Yield on Interest-Earning Assets (%) | 4.95% | 4.54% | | Average Interest-Bearing Liabilities (thousands) | $751,112 | $789,760 | | Cost of Interest-Bearing Liabilities (%) | 3.80% | 3.86% | | Net Interest Income (thousands) | $7,288 | $5,395 | | Interest Rate Spread (%) | 1.15% | 0.68% | | Net Interest Margin (%) | 1.70% | 1.20% | | Average Interest-Earning Assets to Average Interest-Bearing Liabilities (%) | 115.24% | 114.56% | - The average cost of certificates of deposit decreased from **4.34%** to **4.13%** year-over-year[54](index=54&type=chunk) [Rate/Volume Analysis](index=13&type=section&id=Rate%2FVolume%20Analysis) The rate/volume analysis indicates that the increase in net interest income for both the three and six months ended June 30, 2025, was primarily driven by favorable changes in interest rates, which more than offset the negative impact of changes in volume **Three Months Ended June 30, 2025 vs. 2024:** | | Increase (Decrease) Due to Volume (In thousands) | Increase (Decrease) Due to Rate (In thousands) | Net (In thousands) | | :-------------------------- | :----------------------------------- | :----------------------------- | :----------------- | | Total Interest Income | $(2,662) | $2,693 | $31 | | Total Interest Expense | $(1,454) | $534 | $(920) | | Net Interest Income | $(1,208) | $2,159 | $951 | **Six Months Ended June 30, 2025 vs. 2024:** | | Increase (Decrease) Due to Volume (In thousands) | Increase (Decrease) Due to Rate (In thousands) | Net (In thousands) | | :-------------------------- | :----------------------------------- | :----------------------------- | :----------------- | | Total Interest Income | $(2,017) | $2,910 | $893 | | Total Interest Expense | $(1,197) | $197 | $(1,000) | | Net Interest Income | $(820) | $2,713 | $1,893 | - For both periods, the positive impact of rate changes on interest income and the negative impact of rate changes on interest expense (due to lower deposit costs) significantly contributed to the increase in net interest income[57](index=57&type=chunk)

Core Insights - Bogota Financial Corp. reported a net income of $224,000 for Q2 2025, a significant turnaround from a net loss of $432,000 in Q2 2024, marking a 151.9% increase [1][4] - For the first half of 2025, net income reached $955,000, compared to a net loss of $873,000 in the same period last year, driven by a one-time death benefit of approximately $543,000 [1][17] - The company aims to grow its commercial portfolio while managing risks and is focused on increasing consumer and commercial deposits to lower funding costs [3] Financial Performance - Net interest income increased by $951,000, or 34.7%, to $3.7 million for Q2 2025, reflecting a 48 basis point increase in the net interest rate spread [12] - Interest income for Q2 2025 was $10.5 million, a slight increase of $31,000, or 0.3%, compared to Q2 2024 [5] - Total assets decreased by $49.7 million, or 5.1%, to $921.8 million as of June 30, 2025, primarily due to a reduction in cash and cash equivalents and loans [31] Loan and Deposit Trends - Net loans decreased by $18.5 million, or 2.6%, to $693.2 million, attributed to declines in residential mortgages and construction loans [31] - Total deposits decreased by $14.0 million, or 2.2%, to $628.2 million, with notable declines in certificates of deposit and NOW accounts [33][34] - Delinquent loans increased to $20.4 million, or 2.94% of total loans, primarily due to one commercial real estate loan [32] Non-Interest Income and Expenses - Non-interest income rose by $29,000, or 9.4%, to $332,000 for Q2 2025, driven by increases in bank-owned life insurance income and fees [14] - Non-interest expenses increased by $129,000, or 3.5%, primarily due to higher professional fees and occupancy costs [15] - The efficiency ratio improved to 95.73% for Q2 2025, down from 122.28% in Q2 2024, indicating better cost management [46] Balance Sheet Highlights - Total liabilities decreased by $50.8 million, or 6.1%, to $783.4 million, mainly due to a reduction in deposits and borrowings [33] - Stockholders' equity increased by $1.2 million to $138.4 million, supported by the net income for the period [35] - The company's ratio of average stockholders' equity to total assets improved to 14.96% from 13.99% at the end of 2024 [35]

Financial Position - Total assets decreased by $41.3 million, or 4.3%, from $971.5 million at December 31, 2024, to $930.2 million at March 31, 2025[92]. - Total liabilities decreased by $42.3 million, or 5.1%, to $791.9 million as of March 31, 2025, from $834.2 million as of December 31, 2024[96]. - Total equity increased by $965,000 to $138.3 million, primarily due to net income of $731,000[101]. - Cash and cash equivalents decreased by $26.6 million, or 51.0%, to $25.6 million at March 31, 2025, from $52.2 million at December 31, 2024[93]. - Deposits decreased by $9.2 million, or 1.4%, to $633.0 million at March 31, 2025, from $642.2 million at December 31, 2024[98]. Loan and Asset Quality - Net loans decreased by $10.2 million, or 1.4%, to $701.5 million at March 31, 2025, from $711.7 million at December 31, 2024[94]. - The allowance for credit losses was 0.37% of total loans and 18.65% of non-performing loans at March 31, 2025[95]. - Non-performing assets decreased from $14.0 million at December 31, 2024, to $13.9 million at March 31, 2025[95]. - Provision for credit losses recorded a recovery of $80,000 for the three months ended March 31, 2025, compared to a provision of $35,000 for the same period in 2024[117]. Income and Expenses - Net income increased by $1.2 million to $731,000 for the three months ended March 31, 2025, compared to a net loss of $441,000 for the same period in 2024[108]. - Net interest income rose by $942,000, or 35.5%, to $3.6 million for the three months ended March 31, 2025, from $2.7 million for the same period in 2024[116]. - Interest income increased by $862,000, or 8.6%, from $10.1 million for the three months ended March 31, 2024, to $10.9 million for the same period in 2025[109]. - Non-interest income surged by $590,000, or 197.4%, to $889,000 for the three months ended March 31, 2025, from $299,000 for the same period in 2024[118]. - Interest expense decreased by $80,000, or 1.1%, to $7.3 million for the three months ended March 31, 2025, from $7.4 million for the same period in 2024[113]. - Non-interest expense increased by $217,000, or 5.9%, for the three months ended March 31, 2025, primarily due to a $300,000 increase in occupancy and equipment expense[119]. Interest Rates and Borrowings - The weighted average rate of borrowings was 4.52% as of March 31, 2025, compared to 4.49% at December 31, 2024[100]. - The interest rate spread increased to 1.12% for the three months ended March 31, 2025, compared to 0.68% for the same period in 2024[103]. - As of March 31, 2025, net interest income simulation results indicated that a 400 basis point increase in interest rates would lead to a decrease of 13.35% in net interest income for the first year[128]. Liquidity and Capitalization - The company had the ability to borrow up to $261.9 million from the Federal Home Loan Bank of New York, with $139.8 million outstanding as of March 31, 2025[130]. - Cash and cash equivalents totaled $25.6 million, while available-for-sale securities amounted to $137.7 million as of March 31, 2025[132]. - Certificates of deposit due within one year totaled $439.7 million, representing 69.5% of total deposits as of March 31, 2025[133]. - The company reported a Community Bank Leverage Ratio of 15.00% as of March 31, 2025, exceeding the 9% requirement to be considered "well capitalized"[134]. - The company believes it has sufficient liquidity to meet both short- and long-term needs as of March 31, 2025[131]. - The company monitors its liquidity position daily to ensure it can meet current funding commitments[133]. Regulatory and Internal Controls - There have been no changes in the company's internal controls over financial reporting that materially affected its effectiveness during the three months ended March 31, 2025[137]. - The company was not involved in any pending legal proceedings that would materially affect its financial condition as of March 31, 2025[139]. Management Insights - Management's opinion is that movements in interest rates have a greater impact on financial condition than changes in inflation rates[135].

Financial Performance - Net income for the three months ended March 31, 2025, was $731,000, or $0.06 per share, compared to a net loss of $441,000 for the same period in 2024, marking a $1.2 million increase in net income [3][8]. - Non-interest income increased by $590,000, or 197.4%, to $889,000 for the three months ended March 31, 2025, largely due to a $550,000 increase in bank-owned life insurance income [18]. - The efficiency ratio improved to 86.10% for the three months ended March 31, 2025, compared to 137.41% for the same period in 2024, indicating enhanced operational efficiency [34]. Interest Income and Expenses - Net interest income increased by $942,000, or 35.5%, to $3.6 million for the three months ended March 31, 2025, reflecting a 44 basis point increase in the net interest rate spread to 1.12% [16]. - Net interest income increased to $3,593,238 for the three months ended March 31, 2025, compared to $2,651,237 for the same period in 2024, reflecting a growth of approximately 35.5% [32]. - Interest expense on deposits decreased slightly to $5,762,324 for the three months ended March 31, 2025, from $5,969,881 in the same period of 2024 [32]. - The interest rate spread improved to 1.12% in Q1 2025 from 0.68% in Q1 2024 [40]. - The net interest margin rose to 1.66% in Q1 2025, up from 1.18% in Q1 2024 [40]. Asset and Liability Management - Total assets decreased by $41.3 million, or 4.3%, to $930.2 million at March 31, 2025, primarily due to decreases in cash and cash equivalents, loans, and securities [7][21]. - Total liabilities decreased by $42.3 million, or 5.1%, to $791.9 million, mainly due to a $32.4 million decrease in borrowings [23]. - Total assets decreased from $971,489,884 as of December 31, 2024, to $930,191,837 as of March 31, 2025, representing a decline of approximately 4.26% [30]. - Total deposits decreased by $9.2 million, or 1.4%, to $633.0 million at March 31, 2025, driven by a $9.5 million decrease in interest-bearing deposits [7]. - Total deposits decreased from $642,188,042 as of December 31, 2024, to $633,035,200 as of March 31, 2025, a decline of approximately 1.8% [37]. Loan Performance - Delinquent loans decreased to $13.5 million, or 1.92% of total loans, at March 31, 2025, down from $14.3 million, or 2.01% of total loans, at December 31, 2024 [22]. - Total loans decreased from $714,337,185 as of December 31, 2024, to $704,075,375 as of March 31, 2025, a reduction of approximately 1.8% [37]. - The allowance for credit losses as a percentage of total loans was 0.37% as of March 31, 2025, down from 0.40% as of March 31, 2024 [34]. - Non-performing loans as a percentage of total loans increased to 1.97% as of March 31, 2025, compared to 1.75% as of March 31, 2024 [34]. Capital Position - Total stockholders' equity increased by $965,000 to $138.3 million, attributed to net income and a decrease in accumulated other comprehensive loss [24]. - The Tier 1 capital ratio improved to 15.00% as of March 31, 2025, compared to 13.23% as of March 31, 2024, indicating stronger capital position [34]. - The company reported a total equity of $137.705 million in Q1 2025, a slight increase from $136.810 million in Q1 2024 [39].