Bogota Financial (BSBK) - 2025 Q4 - Annual Results

Financial Performance - Net income for Q4 2025 was $680,000 or $0.05 per share, a turnaround from a net loss of $930,000 or $0.07 per share in Q4 2024[1] - Full-year net income for 2025 was $2.1 million or $0.17 per share, compared to a net loss of $2.2 million or $0.17 per share in 2024, marking a 196.3% increase[20] - Net income improved from a loss of $2,170,420 in 2024 to a profit of $2,090,778 in 2025, marking a turnaround of approximately $4,261,198[44] Assets and Liabilities - Total assets decreased by $66.7 million, or 6.9%, to $904.9 million as of December 31, 2025, primarily due to a decrease in cash and loans[4] - Total liabilities decreased by $70.3 million, or 8.4%, to $764.0 million, mainly due to a $78.9 million decrease in borrowings[35] - Total assets decreased from $971,489,884 in 2024 to $904,947,500 in 2025, a decline of approximately 6.9%[42] Loans and Deposits - Net loans decreased by $64.1 million, or 9.0%, to $647.6 million as of December 31, 2025, with a notable increase in commercial real estate loans[4] - Total deposits increased by $10.3 million, or 1.6%, to $652.4 million as of December 31, 2025, driven by a $14.8 million increase in interest-bearing deposits[4] - Total loans decreased from $714,337,185 in 2024 to $650,175,556 in 2025, a reduction of about 9%[49] Interest Income and Expense - Interest income for Q4 2025 increased by $359,000, or 3.4%, to $11.0 million, attributed to higher yields on interest-earning assets[6] - Net interest income for Q4 2025 rose by $1.8 million, or 71.6%, to $4.3 million, reflecting a 90 basis point increase in the net interest rate spread[14] - Interest expense decreased by $3.7 million, or 11.7%, from $31.2 million in 2024 to $27.5 million in 2025 due to lower costs on interest-bearing liabilities[24] Equity and Capital - Total stockholders' equity increased by $3.6 million to $140.9 million, attributed to a reduction in accumulated other comprehensive loss and net income of $2.1 million[36] - The Tier 1 capital to average assets ratio increased to 15.80% in 2025 from 13.34% in 2024, showing stronger capital adequacy[46] Efficiency and Profitability - The efficiency ratio improved from 122.61% in 2024 to 88.29% in 2025, indicating better cost management[46] - Return on average assets increased from -0.22% in 2024 to 0.22% in 2025, reflecting enhanced profitability[46] - The net interest margin improved from 1.16% in 2024 to 1.80% in 2025, indicating more effective interest income generation[46] Future Plans - The company plans to open a new branch in Central/Southern New Jersey in early summer 2026 as part of its growth strategy[3] Other Financial Metrics - Non-interest income rose by $420,000, or 31.1%, primarily driven by a $564,000 increase in bank-owned life insurance due to collection of death proceeds[29] - Delinquent loans increased by $13.3 million to $27.6 million, or 3.1% of total loans, primarily due to three commercial real estate loans[34] - The allowance for credit losses as a percentage of total loans was 0.39% in 2025, slightly up from 0.37% in 2024[46]