Bogota Financial (BSBK) - 2024 Q3 - Quarterly Results

Financial Performance - For the three months ended September 30, 2024, Bogota Financial Corp. reported a net loss of $367,000, or$ 0.03 per share, compared to a net loss of $29,000, or$ 0.00 per share, for the same period in 2023[3]. - For the nine months ended September 30, 2024, the company reported a net loss of $1.2 million, or$ 0.10 per share, compared to net income of $1.8 million, or$ 0.14 per share, for the same period in 2023[3]. - Net income decreased by $3.1 million, or 168.1%, resulting in a net loss of$ 1.2 million for the nine months ended September 30, 2024[9]. - The company reported a net loss of $366,960 for the three months ended September 30, 2024, compared to a net loss of$ 29,053 in the same period of 2023[17]. - Basic loss per share was $(0.03) for the three months ended September 30, 2024, compared to$ (0.00) for the same period in 2023[17]. Asset and Liability Changes - Total assets increased by $39.6 million, or 4.2%, to$ 978.9 million at September 30, 2024, from $939.3 million at December 31, 2023[5]. - Total liabilities increased by$ 39.8 million, or 5.0%, to $841.9 million, mainly due to a$ 34.9 million increase in borrowings[12]. - Total assets increased to $978,889,264 as of September 30, 2024, from$ 939,324,203 as of December 31, 2023, representing a growth of approximately 4.9%[15]. - Total liabilities increased to $841,949,507 as of September 30, 2024, from$ 802,151,000 as of December 31, 2023, an increase of approximately 4.9%[15]. - Federal Home Loan Bank advances increased by $34.9 million, or 20.8%, due to new borrowings[12]. Interest Income and Expense - Interest income increased by$ 1.3 million, or 14.3%, to $10.6 million for the three months ended September 30, 2024, primarily due to higher yields on interest-earning assets[7]. - Interest income increased by$ 3.4 million, or 12.4%, to $31.1 million for the nine months ended September 30, 2024, driven by higher yields on interest-earning assets[9]. - Interest expense increased by$ 1.9 million, or 31.1%, to $8.0 million for the three months ended September 30, 2024, due to higher costs and average balances on certificates of deposit and borrowings[7]. - The average cost of deposits increased by 128 basis points to 3.95% for the first three quarters of 2024, compared to 2.67% for the first nine months of 2023[5]. Loan and Credit Quality - Delinquent loans increased by$ 8.9 million to $21.5 million, or 3.0% of total loans, at September 30, 2024[11]. - The company's allowance for credit losses related to loans was 0.39% of total loans at September 30, 2024[11]. - Non-performing loans as a percentage of total loans stood at 1.94% as of September 30, 2024, compared to 1.73% for the same period in 2023[18]. - Total loans decreased from$ 717,474,584 on December 31, 2023, to $711,644,515 on September 30, 2024, representing a decline of approximately 0.12%[19]. - The net loans as of September 30, 2024, were$ 708,896,566, down from $714,688,635 as of December 31, 2023, indicating a decrease of about 0.82%[19]. Operational Efficiency - The efficiency ratio increased to 120.78% for the three months ended September 30, 2024, compared to 104.40% in the prior year, indicating a decline in operational efficiency[18]. - Net interest income decreased by$ 560,000, or 17.4%, to $2.7 million for the three months ended September 30, 2024, from$ 3.2 million for the same period in 2023[7]. - Net interest income decreased by $4.0 million, or 33.1%, to$ 8.0 million for the nine months ended September 30, 2024, reflecting a 73 basis point decrease in net interest rate spread[10]. - The net interest margin for the three months ended September 30, 2024, was 1.15%, down from 1.47% in the same period of 2023[22]. - The interest rate spread decreased to 0.66% for the three months ended September 30, 2024, down from 1.01% in the same period of 2023[22]. Strategic Focus - The company plans to focus on core deposits and commercial lending, with an emphasis on offering new technology through partnerships to attract new customers[6]. - As of September 30, 2024, the company repurchased 163,790 shares of its common stock at a cost of $1.2 million under its stock repurchase program[4].