Bogota Financial Corp's Remarkable Performance in 2025
Bogota Financial Corp's Financial Results Overview
TEANECK, N.J. — Bogota Financial Corp. (NASDAQ: BSBK), the holding company for Bogota Savings Bank, has recently shared its financial report for the three and six months leading up to June 30, 2025. This report reveals that the company experienced a notable turnaround with net income reaching $224,000 or $0.02 per share for the second quarter of 2025, compared to a net loss of $432,000 or $0.03 per share in the same quarter last year. For the first half of 2025, the company registered net income of $955,000 or $0.08 per share, a substantial improvement from the $873,000 net loss of the prior year.
Key Financial Highlights
The financial figures show a blend of challenges and successes faced by Bogota Financial Corp. Total assets decreased by $49.7 million, representing a decline of 5.1% to $921.8 million by the end of June 2025, attributed mainly to reductions in cash and cash equivalents and loans. Notably, cash and cash equivalents saw a dramatic drop of $31.9 million, which is roughly 61.1% from the previous figures reported in December 2024.
However, the company managed to bolster its securities holdings, which increased by $4.3 million, or 3.1%, amounting to $144.6 million. Additionally, despite a decrease in net loans by $18.5 million to $693.2 million, the total deposits experienced a more modest decline. At June 30, 2025, total deposits stood at $628.2 million, a 2.2% reduction compared to the previous year-end.
Management Insights
Kevin Pace, President and CEO, expressed satisfaction with the results, indicating that the company's performance aligns with earlier projections. He acknowledges the steady loan demand while predicting a potential increase towards the end of 2025 and into early 2026. Pace emphasized a commitment to growth in commercial lending while simultaneously managing risk across various markets and property types. Efforts to grow both consumer and commercial deposits remain pivotal as they seek to lower funding costs.
In conjunction with these strategies, Bogota Financial Corp successfully completed its fifth stock buyback program recently. Since its initial public offering, the company has effectively reduced its outstanding shares significantly, striving to elevate shareholder value through these strategic maneuvers.
Income Statement Analysis
A comprehensive comparison of operating results reveals a striking rebound for the second quarter of 2025, with net income soaring by 151.9% due to an increase in net interest income, which rose by $951,000. Nonetheless, the benefits from this increase were partially offset by a decrease in income tax benefits amounting to $229,000.
Interest income saw a slight uptick of 0.3%, hitting $10.5 million, while income from loans experienced a marginal decline of 0.1%. Interestingly, interest income from securities increased by a robust 4.6%, undeniably influenced by a strategy to optimize yields through a well-calculated reinvestment of proceeds from previously sold securities.
Expenses and Tax Insights
On the expense front, interest expenses dropped sharply by $920,000 due to lower average balances and reduced rates on deposits. Given the lower interest rate environment, the average cost of deposits fell to 3.67%, reflecting a 32-basis point reduction compared to the previous year.
Non-interest income for the second quarter saw a notable increase as well, coming in at $332,000, which is a 9.4% rise from $303,000 in 2024, heavily driven by gains on the sale of loans and an uptick in fees and service charge earnings. However, the company's non-interest expenses experienced a 3.5% increase, reflecting higher professional fees and occupancy costs, primarily due to a lease-buyback transaction from the previous year.
Balance Sheet Dynamics and Loan Quality Assessment
From a balance sheet perspective, Bogota Financial Corp's total liabilities recorded a decrease correlating to a $50.8 million reduction. This decline is primarily linked to a decrease in deposits alongside a strategic paydown of borrowings. The company's focus on improving asset quality has resulted in a careful assessment of loans. Delinquent loans rose to $20.4 million, which represented 2.94% of total loans, attributed mainly to one particular commercial real estate loan perceived as well secured.
Looking towards the future, Bogota Financial continues to enhance its lending portfolio while proactively managing risks associated with market fluctuations. The management remains optimistic about fostering additional growth, particularly in sectors that exhibit resilience amidst prevailing economic challenges.
About Bogota Financial Corp
Founded as the mid-tier holding company for Bogota Savings Bank, Bogota Financial Corp prioritizes meeting the banking needs of customers with a strong operational footprint in New Jersey. Since its inception in 1893, the bank has committed itself to adapting to changing financial landscapes while maintaining steadfast service excellence.
Frequently Asked Questions
What were the net income figures for Bogota Financial Corp in 2025?
For the three months ending June 30, 2025, the net income was $224,000, while for the six months it totaled $955,000.
How do current assets compare to last year's figures?
The total assets decreased to $921.8 million by June 30, 2025, reflecting a decrease from $971.5 million at the end of December 2024.
What is the status of loans at Bogota Financial Corp?
The company's net loans stood at $693.2 million as of June 30, 2025, down from $711.7 million at the end of 2024.
How has the company addressed shareholder value?
Bogota Financial Corp has executed a stock buyback plan to reduce the number of outstanding shares, aimed at enhancing shareholder value.
What strategic goals does the company have for the future?
Management aims for growth in commercial lending and enhancing deposit bases while managing associated risks effectively.
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