Bogota Financial Corp. Reports Results for the Three and Twelve Months Ended December 31, 2024

Core Viewpoint - Bogota Financial Corp. reported a net loss for the year ended December 31, 2024, amounting to $2.2 million, a significant decline from a net income of$643,000 in the previous year, primarily driven by a decrease in net interest income and increased interest expenses [1][22]. Financial Performance Summary - For the three months ended December 31, 2024, the company recorded a net loss of $930,000, an improvement from a net loss of$1.2 million in the same period of the previous year [1][9]. - Total assets increased by $32.2 million, or 3.4$971.5 million as of December 31, 2024, primarily due to an increase in cash and cash equivalents [8][37]. - Total deposits rose by $16.9 million, or 2.7$642.2 million, driven by increases in interest-bearing deposits and non-interest bearing checking accounts [8][39]. Income Statement Analysis - Interest income for the three months ended December 31, 2024, increased by $1.0 million, or 10.7$10.6 million, attributed to higher yields on interest-earning assets [10][12]. - Interest expense rose by $1.5 million, or 22.1$8.1 million, reflecting higher costs on interest-bearing liabilities [14][15]. - Net interest income decreased by $439,000, or 14.9$2.5 million for the three months ended December 31, 2024, due to a decrease in the net interest rate spread [17][31]. Balance Sheet Analysis - Cash and cash equivalents increased by $27.3 million, or 109.5$52.2 million, reflecting growth in deposits and borrowings [8][37]. - Net loans decreased by $3.0 million, or 0.4$711.7 million, primarily due to declines in residential and construction loans [8][37]. - The allowance for credit losses was 0.37% of total loans as of December 31, 2024, compared to 0.39% a year earlier [38][49]. Strategic Initiatives - The company completed a balance sheet restructuring, including a sale-leaseback transaction that generated a $9.0 million pre-tax gain [4][5]. - The company has a stock repurchase program approved for up to 237,090 shares, with 188,047 shares repurchased at a cost of$1.4 million as of December 31, 2024 [2][5]. Market Conditions - The company noted that uncertainty around interest rates continues to impact growth planning, with a focus on improving net interest margins [6][5]. - The competitive market has exerted pressure on earnings due to high costs of funds [6][5].