Bogota Financial Corp. Reports Results for the Three and Nine Months Ended September 30, 2025

Core Insights - Bogota Financial Corp. reported a net income of $455,000 for Q3 2025, a significant improvement from a net loss of $367,000 in Q3 2024, and a net income of $1.4 million for the nine months ended September 30, 2025, compared to a net loss of $1.2 million in the same period last year [1][18]. Financial Performance - For the three months ended September 30, 2025, net income increased by $822,000, primarily due to a rise in net interest income [5]. - Total assets decreased by $45.7 million, or 4.7%, to $925.8 million as of September 30, 2025, largely due to a reduction in cash and cash equivalents and loans, despite an increase in securities [5][32]. - Cash and cash equivalents fell by $21.0 million, or 40.2%, to $31.2 million, while securities rose by $20.4 million, or 14.6%, to $160.7 million [5][33]. - Net loans decreased by $42.5 million, or 6.0%, primarily due to declines in residential mortgages and construction loans [5][33]. - Total deposits increased by $4.6 million, or 0.7%, to $646.8 million, driven by increases in certificates of deposit and savings accounts [5][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 [13]. - Interest income on loans decreased by $168,000, or 2.0%, while interest income on securities increased by $206,000, or 10.9% [8][9]. - 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 [10][11]. Non-Interest Income and Expenses - Non-interest income decreased slightly by $6,000, or 1.8%, to $321,000 for Q3 2025, primarily due to a prior year's gain on the sale of loans [15]. - Non-interest expenses increased by $133,000, or 3.7%, with notable increases in professional fees and occupancy costs [16][30]. Tax and Credit Losses - Income tax expense rose by $326,000 to $73,000 for Q3 2025, reflecting an increase in pre-tax income [17]. - The company recorded a recovery of credit losses of $50,000 for Q3 2025, compared to no provision for credit losses in the same period last year [14]. Regulatory and Strategic Developments - The company received regulatory approval for a stock repurchase program of up to 237,590 shares, representing approximately 5% of its outstanding common stock [2]. - The focus remains on sustainable growth, operational efficiency, and delivering long-term value for customers and shareholders, as stated by the CEO [4].