Bogota Financial (US:BSBK)2025-11-12 19:43Financial Position - Total assets decreased by $45.7 million, or 4.7%, from $971.5 million at December 31, 2024, to $925.8 million at September 30, 2025[91]. - Total liabilities decreased by $49.1 million, or 5.9%, to $785.1 million as of September 30, 2025, from $834.2 million as of December 31, 2024[98]. - Stockholders' equity increased by $3.4 million to $140.7 million, primarily due to net income of $1.4 million[102]. - The company reported a capital ratio of 15.42% as of September 30, 2025, exceeding the 9% requirement to be considered "well capitalized" under regulatory guidelines[152]. - The company exceeded all applicable regulatory capital requirements as of September 30, 2025, and is considered a qualifying community bank[152]. Cash and Liquidity - Cash and cash equivalents decreased by $21.0 million, or 40.2%, to $31.2 million at September 30, 2025, from $52.2 million at December 31, 2024[92]. - Cash and cash equivalents totaled $31.2 million, while available-for-sale securities amounted to $160.7 million as of September 30, 2025[150]. - The company’s liquidity position is monitored daily, ensuring sufficient funds to meet current funding commitments[151]. - The company had the ability to borrow up to $234.1 million from the Federal Home Loan Bank of New York, with $119.4 million outstanding as of September 30, 2025[148]. Loan Performance - Net loans decreased by $42.5 million, or 6.0%, to $669.2 million at September 30, 2025, from $711.7 million at December 31, 2024[94]. - Delinquent loans increased by $7.5 million to $21.8 million, or 3.2% of total loans, at September 30, 2025, compared to 2.0% at December 31, 2024[95]. - The allowance for credit losses was 0.38% of total loans at September 30, 2025, compared to 0.37% at December 31, 2024[95]. - Provision for credit losses recorded a recovery of $50,000 compared to no provision in the prior year, due to lower loan balances[121]. Income and Expenses - Net income increased by $822,000 to $455,000 for the three months ended September 30, 2025, compared to a net loss of $367,000 for the same period in 2024[112]. - For the nine months ended September 30, 2025, net income increased by $2.7 million to $1.4 million, primarily due to a $3.1 million increase in net interest income[125]. - Non-interest income decreased by $6,000, or 1.8%, to $321,000, impacted by the absence of loan sale gains in 2025[122]. - Non-interest income for the nine months increased by $612,000, or 65.9%, to $1.5 million, largely due to bank-owned life insurance income[135]. - Non-interest expense increased by $133,000, or 3.7%, with professional fees rising by $113,000, or 45.6%[123]. - Non-interest expense for the nine months increased by $478,000, or 4.4%, with occupancy and equipment costs rising by $833,000, or 74.4%[136]. - Income tax expense increased by $326,000 to an expense of $73,000, driven by a $1.1 million increase in pre-tax income[124]. Interest Income and Expense - Net interest income rose by $1.2 million, contributing to the overall increase in net income[112]. - Interest income for the three months ended September 30, 2025, was $10.6 million, reflecting a slight increase of $8,000 or 0.1% compared to the same period in 2024[113]. - Interest income on cash and cash equivalents increased by $41,000, or 29.7%, to $179,000 due to a $6.5 million increase in the average balance[114]. - Interest income on loans decreased by $168,000, or 2.0%, as the average balance fell by $28.6 million to $683.0 million[115]. - Interest income on securities increased by $206,000, or 10.9%, due to a 141 basis point increase in average yield, from 4.05% to 5.46%[116]. - Interest expense decreased by $1.2 million, or 15.4%, from $8.0 million to $6.7 million, attributed to lower costs on certificates of deposit and lower borrowing balances[117]. - Net interest income increased by $1.2 million, or 46.6%, to $3.9 million, reflecting a 64 basis point increase in net interest rate spread to 1.30%[120]. - The interest rate spread increased to 1.30% for the three months ended September 30, 2025, compared to 0.66% for the same period in 2024[105]. - The net interest margin improved to 1.80% for the three months ended September 30, 2025, up from 1.15% in 2024[105]. Interest Rate Sensitivity - As of September 30, 2025, the net portfolio value (NPV) decreased by $45,353 thousand (34.67%) under a 400 basis point increase in interest rates, resulting in an NPV ratio of 10.20%[143]. - The estimated change in net interest income over one year indicates a decrease of 15.44% with a 400 basis point increase in interest rates[146]. - The NPV ratio is projected to increase to 18.08% with a 400 basis point decrease in interest rates, reflecting a $46,981 thousand increase in NPV[143].