Bogota Financial (US:BSBK)2022-08-10 16:00Financial Position - Total assets increased by $37.6 million, or 4.5%, to $874.9 million at June 30, 2022, primarily due to loan originations and investment securities purchases [144]. - Total deposits rose by $13.8 million, or 2.3%, to $611.3 million at June 30, 2022, reflecting a new $11.0 million interest-bearing checking municipal relationship [151]. - Total securities available for sale increased by $55.7 million, or 133.1%, to $97.5 million at June 30, 2022, due to $67.5 million in purchases of various securities [146]. - Total securities held to maturity increased by $12.4 million, or 16.7%, to $86.4 million at June 30, 2022, primarily due to $23.1 million in purchases [147]. - Total assets reached $846,798,000 as of June 30, 2022, compared to $801,125,000 in the previous year [159]. - Total liabilities were $701,880,000, with total equity at $144,918,000 as of June 30, 2022 [159]. - As of June 30, 2022, the company had the ability to borrow up to $260.0 million from the Federal Home Loan Bank, with $115.0 million outstanding and $1.5 million utilized as collateral for letters of credit [202]. - Cash and cash equivalents totaled $7.6 million, while available-for-sale securities amounted to $97.5 million as of June 30, 2022 [204]. Loan and Deposit Activity - Net loans increased by $60.6 million, or 10.6%, to $630.8 million at June 30, 2022, driven by an 18.7% increase in one-to-four residential real estate loans [148]. - The Bank granted 172 loan modifications totaling $67.9 million, representing 11.6% of the total loan portfolio, to assist customers affected by the COVID-19 pandemic [142]. - The Bank processed 113 Paycheck Protection Program (PPP) applications totaling $10.5 million in 2020 and 54 applications totaling $6.9 million in the first half of 2021 [143]. Income and Profitability - Net income increased by $203,000, or 14.1%, to $1.6 million for the three months ended June 30, 2022, compared to $1.4 million for the same period in 2021 [163]. - Net income decreased by $1.4 million, or 31.5%, to $3.0 million for the six months ended June 30, 2022, from $4.4 million for the same period in 2021 [178]. - Net interest income rose by $930,000, contributing significantly to the overall increase in net income [163]. - Net interest income increased by $1.5 million, or 15.8%, to $10.8 million for the six months ended June 30, 2022, from $9.4 million for the same period in 2021 [187]. - Non-interest income decreased by $280,000, or 52.4%, to $254,000 for the three months ended June 30, 2022, from $533,000 for the same period in 2021 [174]. - Non-interest income decreased by $2.3 million, or 79.0%, to $598,000 for the six months ended June 30, 2022, from $2.9 million for the same period in 2021 [189]. Interest Income and Expenses - Interest income increased by $709,000, or 11.4%, to $6.9 million for the three months ended June 30, 2022, driven by an $18.2 million increase in the average balance of interest-earning assets [164]. - Interest income increased by $714,000, or 5.7%, to $13.2 million for the six months ended June 30, 2022, from $12.5 million for the same period in 2021 [179]. - Interest income on loans increased by $164,000, or 2.9%, to $5.8 million for the three months ended June 30, 2022, compared to $5.7 million for the same period in 2021 [166]. - Interest income on securities increased by $578,000, or 143.9%, to $979,000 for the three months ended June 30, 2022, from $401,000 for the same period in 2021 [168]. - The average yield on interest-earning assets increased by 29 basis points to 3.46% for the three months ended June 30, 2022, up from 3.17% for the same period in 2021 [164]. - The interest rate spread was 2.61% for the three months ended June 30, 2022, compared to 2.27% for the same period in 2021 [161]. - The net interest margin was 2.85% for the three months ended June 30, 2022, reflecting improved profitability [161]. Expenses and Loss Provisions - Non-interest expense increased by $126,000, or 1.8%, to $7.1 million for the six months ended June 30, 2022, compared to the same period in 2021 [190]. - The provision for loan losses increased by $154,000, impacting overall profitability despite the rise in net interest income [163]. - Provision for loan losses recorded was $100,000 for the three months ended June 30, 2022, compared to a $54,000 credit for the same period in 2021 [173]. Risk Management and Capitalization - The company has established an Asset/Liability Management Committee (ALCO) to oversee interest rate risk management strategies, meeting at least quarterly [192]. - The company maintains a strong liquidity position, monitoring liquidity daily to meet current funding commitments [205]. - The company has diversified its loan portfolio and promotes core deposit products to manage interest rate risk effectively [193]. - The company reported a Community Bank Leverage Ratio of 17.50% as of June 30, 2022, exceeding the 9% requirement to be considered "well capitalized" under regulatory guidelines [207]. - The net portfolio value (NPV) is projected to decrease by $24,326,000 (20.33%) if interest rates increase by 400 basis points, with the NPV ratio dropping to 12.66% of portfolio assets [197]. - Net interest income simulation indicated a potential decrease of 15.09% in net interest income over one year if interest rates rise by 400 basis points [200]. Internal Controls - There have been no changes in the company's internal controls over financial reporting that materially affected its effectiveness during the six months ended June 30, 2022 [209].