Financial Position - Total assets increased by $39.6 million, or 4.2%, to $978.9 million as of September 30, 2024, primarily due to a $39.7 million, or 57.6%, increase in securities available for sale[93] - Cash and cash equivalents decreased by $3.9 million, or 15.8%, to $21.0 million at September 30, 2024, as excess funds were used to purchase securities[94] - Net loans decreased by $5.8 million, or 0.8%, to $708.9 million, with a notable decrease of $12.6 million, or 2.6%, in one- to four-family residential real estate loans[97] - Total liabilities increased by $39.7 million, or 5.0%, to $841.9 million, driven by a $34.9 million increase in borrowings[100] - Deposits increased by $3.9 million, or 0.6%, to $629.2 million, reflecting a rise in interest-bearing demand deposits[102] - Federal Home Loan Bank borrowings increased by $34.9 million, or 20.8%, to $202.6 million, as part of a leveraging strategy[104] - Stockholders' equity decreased by $233,000 to $136.9 million, primarily due to a net loss of $1.2 million and stock repurchases[105] - Total liabilities amounted to $830,890,000, with total equity at $136,821,000 as of September 30, 2024[110] Income and Expenses - Net income decreased by $338,000 to a net loss of $367,000 for the three months ended September 30, 2024, compared to a net loss of $29,000 for the same period in 2023[114] - Interest income increased by $1.3 million, or 14.3%, from $9.3 million for the three months ended September 30, 2023, to $10.6 million for the same period in 2024, primarily due to higher yields on interest-earning assets[115] - Net interest income was $2,657,000 for the three months ended September 30, 2024, down from $3,217,000 in the same period of 2023[108] - The interest rate spread decreased to 0.66% for the three months ended September 30, 2024, compared to 1.01% for the same period in 2023[108] - The net interest margin was 1.15% for the three months ended September 30, 2024, down from 1.47% in the same period of 2023[108] - Non-interest income increased by $37,000, or 13.0%, to $327,000 for the three months ended September 30, 2024, with bank-owned life insurance income rising by $23,000[124] - Non-interest expense decreased by $56,000, or 1.5%, for the three months ended September 30, 2024, primarily due to a $171,000 reduction in salaries and employee benefits[125] - Net income decreased by $3.1 million, or 168.1%, to a net loss of $1.2 million for the nine months ended September 30, 2024, primarily due to a decrease of $4.0 million in net interest income[128] - Interest income increased by $3.4 million, or 12.4%, to $31.1 million for the nine months ended September 30, 2024, due to higher yields on interest-earning assets[129] - Non-interest income increased by $73,000, or 8.5%, to $929,000 for the nine months ended September 30, 2024, with bank-owned life insurance income increasing by $74,000[138] Interest and Yield - Total interest-earning assets averaged $909,490,000 with an interest income of $31,156,000, yielding 4.57% for the three months ended September 30, 2024[110] - Average balance of loans was $711,697,000, generating interest income of $24,888,000, yielding 4.66% for the three months ended September 30, 2024[110] - Total interest-bearing deposits averaged $621,946,000 with an interest expense of $18,385,000, yielding 3.95% for the three months ended September 30, 2024[110] - Interest income on cash and cash equivalents decreased by $30,000, or 17.9%, to $138,000 for the three months ended September 30, 2024, due to a $2.6 million decrease in the average balance to $10.2 million[116] - Interest income on loans increased by $400,000, or 5.0%, to $8.4 million for the three months ended September 30, 2024, primarily due to a 24 basis point increase in the average yield to 4.69%[117] - Interest income on securities increased by $889,000, or 88.2%, to $1.9 million for the three months ended September 30, 2024, driven by a $48.7 million increase in the average balance to $187.2 million[118] - 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 interest-bearing liabilities[119] - Net interest income decreased by $560,000, or 17.4%, to $2.7 million for the three months ended September 30, 2024, reflecting a 35 basis point decrease in the net interest rate spread to 0.66%[122] Capital and Liquidity - The company reported a Community Bank Leverage Ratio of 13.12%, exceeding the 9% requirement to be considered "well capitalized"[155] - The company believes it has sufficient liquidity to meet both short- and long-term needs as of September 30, 2024[152] - The company had the ability to borrow up to $297.9 million, with $202.7 million outstanding as of September 30, 2024[151] - Cash and cash equivalents totaled $21.0 million, while available-for-sale securities amounted to $108.6 million as of September 30, 2024[153] - Certificates of deposit due within one year totaled $439.7 million, representing 69.9% of total deposits[154] Share Repurchase Program - A total of 163,790 shares were repurchased at a cost of $1.2 million under the stock repurchase program as of September 30, 2024[164] - The average price paid per share for repurchases during the third quarter was $7.35[165] - The maximum number of shares that may yet be purchased under the repurchase program is 112,298 shares[165] - As of September 30, 2024, the company repurchased 163,790 shares at a cost of $1.2 million, representing approximately 5% of its outstanding common stock[164] - During the third quarter of 2024, the company purchased a total of 56,467 shares at an average price of $7.35 per share[165] - The company received regulatory approval for the repurchase program on April 24, 2024, with no scheduled expiration date[164] Internal Controls and Compliance - The company identified a material weakness in its internal controls over financial reporting related to the accounting for fair value hedges, which was corrected in the first quarter of 2024[159] - No changes in the company's internal controls over financial reporting materially affected the reporting as of September 30, 2024[161] - There were no identified misstatements in previously issued financial statements despite the material weakness[159] - The company continues to account for fair value hedges in accordance with generally accepted accounting principles going forward[160] - There have been no material changes in risk factors applicable to the company since the last annual report[163] - The company was not involved in any pending legal proceedings that would materially affect its financial condition[163] Interest Rate Sensitivity - As of September 30, 2024, the company had a net portfolio value (NPV) of $114,616,000, with a ratio of 12.08%[147] - A 400 basis point increase in interest rates would result in a dollar change in NPV of $(46,293,000), representing a percent change of (40.39)%[147] - The estimated change in net interest income over one year, with a 400 basis point increase, is projected to be (13.32)%[149]
Bogota Financial (BSBK) - 2024 Q3 - Quarterly Report