Bogota Financial (BSBK) - 2025 Q2 - Quarterly Report

PART I. FINANCIAL INFORMATION Financial Statements 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 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 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) 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 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] - 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] Consolidated Statements of Cash Flows 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 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] - 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] - 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][42] - 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] Management's Discussion and Analysis of Financial Condition and Results of Operations 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] - 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] - 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][115] - 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] - 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] Quantitative and Qualitative Disclosures About Market Risk 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 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] - 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] PART II. OTHER INFORMATION Legal Proceedings 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] Risk Factors 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] Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of Equity Securities 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] Defaults Upon Senior Securities The company reported no defaults upon senior securities - The company reported "None" for this item[156] Mine Safety Disclosures This item is not applicable to the company - This item is reported as "Not applicable"[157] Other Information 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] Exhibits 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]