Financial Position - Total assets increased by $35.4 million, or 3.8%, to $974.7 million at June 30, 2024, primarily due to a $38.0 million, or 55.1%, increase in securities available for sale[83] - Total liabilities increased by $36.2 million, or 4.5%, to $838.4 million as of June 30, 2024, driven by a $23.8 million increase in deposits[87] - Stockholders' equity decreased by $830,000 to $136.3 million, primarily due to a net loss of $873,000 and stock repurchases[92] - At June 30, 2024, uninsured deposits totaled $69.3 million, representing 10.7% of total deposits[90] - The ratio of average stockholders' equity-to-total assets was 13.65% at June 30, 2024, down from 15.24% at December 31, 2023[92] Loan and Asset Quality - Net loans decreased by $7.1 million, or 1.0%, to $707.6 million at June 30, 2024, with a notable decrease of $10.4 million, or 2.1%, in one- to four-family residential real estate loans[85] - Delinquent loans increased by $888,000 to $13.5 million, or 1.90% of total loans, at June 30, 2024, with non-performing assets rising to $13.0 million, representing 1.33% of total assets[86] - The allowance for credit losses related to held-to-maturity securities totaled $108,000, or 0.13% of the total held-to-maturity securities portfolio[84] Income and Expenses - Net income decreased by $1.3 million, or 150.5%, resulting in a net loss of $432,000 for Q2 2024 compared to net income of $857,000 in Q2 2023[101] - Non-interest income increased by $20,000, or 7.0%, to $303,000 for the three months ended June 30, 2024, with bank-owned life insurance income rising by $25,000[108] - Non-interest expense increased by $94,000, or 2.6%, for the three months ended June 30, 2024, with professional fees rising by $146,000, or 128.1%[109] - 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, primarily due to a decrease in net interest income[111] Interest Income and Margin - Interest income increased by $1.1 million, or 11.3%, from $9.4 million in Q2 2023 to $10.5 million in Q2 2024 due to higher yields on interest-earning assets[101] - The interest rate spread decreased to 0.72% in 2024 from 1.57% in 2023[95] - The net interest margin declined to 1.21% in 2024 compared to 1.96% in 2023[95] - Interest income on loans increased by $157,000, or 1.9%, to $8.3 million for the three months ended June 30, 2024, primarily due to an 11 basis point increase in the average yield[103] - Interest income on securities increased by $843,000, or 82.9%, to $1.9 million for the three months ended June 30, 2024, driven by a 123 basis point increase in the average yield[104] Liquidity and Capital - The company had the ability to borrow up to $304.2 million, with $179.4 million outstanding as of June 30, 2024[129] - Cash and cash equivalents totaled $17.6 million, while available-for-sale securities amounted to $106.9 million as of June 30, 2024[130] - The company reported a Community Bank Leverage Ratio of 13.07%, exceeding the 9% requirement to be considered "well capitalized"[132] - The company anticipates sufficient liquidity to meet current funding commitments despite potential deposit outflows[131] Interest Rate Risk - A 400 basis point increase in interest rates is expected to result in a 21.07% decrease in net interest income for the first year[127] - As of June 30, 2024, the estimated net portfolio value (NPV) would decrease by $69,996 thousand (39.75%) with a 400 basis point increase in interest rates[126] - The NPV ratio is projected to decline to 8.10% with a 400 basis point increase in interest rates, reflecting a 32.02% change in assets[126] - The assumptions used in interest rate risk measurements are subject to change and may not accurately predict actual results[125] Other Financial Metrics - The weighted average rate of borrowings increased to 4.71% as of June 30, 2024, compared to 4.54% at December 31, 2023[91] - The average balance of loans was $710,058 thousand in 2024, with interest income of $8,299 thousand and a yield of 4.70%[94] - Total interest-earning assets averaged $912,888 thousand in 2024, generating interest income of $10,474 thousand with a yield of 4.61%[94] - Total interest-bearing liabilities averaged $799,957 thousand in 2024, resulting in interest expense of $7,730 thousand with a cost of 3.89%[94] - The average interest-earning assets to average interest-bearing liabilities ratio was 114.12% in 2024[95] - Interest income on cash and cash equivalents decreased by $22,000, or 14.9%, to $127,000 for the three months ended June 30, 2024, due to a $3.8 million decrease in the average balance[102] Internal Controls - The company has identified a material weakness in internal controls over financial reporting related to fair value hedges, which has been corrected[136]
Bogota Financial (BSBK) - 2024 Q2 - Quarterly Report