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].
Bogota Financial (BSBK) - 2025 Q1 - Quarterly Report