Bogota Financial (BSBK) - 2025 Q3 - Quarterly Results

Financial Performance - Net income for Q3 2025 was $455,000, or $0.04 per share, compared to a net loss of $367,000 in Q3 2024, marking a significant turnaround [2]. - For the nine months ended September 30, 2025, net income increased to $1.4 million from a net loss of $1.2 million in the same period last year, driven by a one-time death benefit of approximately $543,000 [20]. - The net income for the three months ended September 30, 2025, was $454,625, a significant recovery from a net loss of $366,960 in the same period of 2024 [47]. - Total stockholders' equity increased by $3.4 million to $140.7 million, primarily due to net income of $1.4 million [38]. Asset and Liability Management - Total assets decreased by $45.7 million, or 4.7%, to $925.8 million as of September 30, 2025, primarily due to a reduction in cash and loans [6]. - Total liabilities decreased by $49.1 million, or 5.9%, to $785.1 million at September 30, 2025, primarily due to a $52.8 million decrease in borrowings [36]. - Total assets decreased from $974,977 thousand in 2024 to $924,870 thousand in 2025, a decline of approximately 5.1% [55]. - Total liabilities decreased from $838,335 thousand in 2024 to $785,439 thousand in 2025, a decline of approximately 6.3% [55]. Loan and Deposit Trends - Net loans decreased by $42.5 million, or 6.0%, to $669.2 million, mainly due to declines in residential mortgages and construction loans [6]. - Total loans decreased to $671,771,935 as of September 30, 2025, from $714,337,185 at December 31, 2024, reflecting a decline of 5.9% [53]. - Total deposits increased by $4.6 million, or 0.7%, to $646.8 million, supported by a rise in certificates of deposit and savings accounts [6]. - Delinquent loans increased by $7.5 million to $21.8 million, or 3.24% of total loans, at September 30, 2025 [35]. Interest Income and Expense - Net interest income rose by $1.2 million, or 46.6%, to $3.9 million for Q3 2025, reflecting a 64-basis point increase in the net interest rate spread [15]. - Interest expense decreased by $1.2 million, or 15.4%, to $6.7 million for Q3 2025, attributed to lower costs on deposits and reduced borrowings [12]. - Net interest income increased to $3,894,039 for the three months ended September 30, 2025, compared to $2,657,328 in 2024, representing a growth of 46.4% [47]. - The total interest expense for the three months ended September 30, 2025, was $6,733,494, down from $7,962,934 in 2024, reflecting a decrease of 15.4% [47]. Non-Interest Income and Expenses - Non-interest income rose by $612,000, or 65.9%, to $1.5 million for the nine months ended September 30, 2025, from $930,000 for the same period in 2024 [31]. - Non-interest expense increased by $478,000, or 4.4%, for the nine months ended September 30, 2025, compared to the same period in 2024 [32]. Credit Quality - The allowance for credit losses as a percent of total loans was 0.38% as of September 30, 2025, compared to 0.39% in 2024, indicating stable asset quality [49]. - Non-performing loans as a percent of total loans increased to 3.06% as of September 30, 2025, from 1.94% in 2024, suggesting a rise in credit risk [49]. - The Company recorded a recovery of credit losses of $130,000 for the nine months ended September 30, 2025, compared to a provision for credit losses of $70,000 for the same period in 2024 [30]. Regulatory and Strategic Actions - The company received regulatory approval for a stock buyback program of up to 237,590 shares, representing approximately 5% of its outstanding common stock [3].