Bogota Financial Corp. Reports Results for the Three and Six Months Ended June 30, 2022

Rhea-AI Summary

Bogota Financial Corp. (NASDAQ: BSBK) reported a net income of $1.6 million for Q2 2022, up 14.1% from $1.4 million in Q2 2021. However, net income for the first half of 2022 dropped to $3.0 million from $4.4 million in the prior year, influenced by a prior year's one-time gain. Total assets rose 4.5% to $874.9 million, driven by a $60.6 million increase in loans. The company repurchased 145,582 shares under a buyback plan. Despite positive net interest income growth, non-interest income fell significantly, decreasing by 52.4% in Q2.

Positive

• Net income for Q2 2022 increased by 14.1% to $1.6 million.
• Total assets grew by 4.5% to $874.9 million as of June 30, 2022.
• Net loans rose by 10.6% to $630.8 million, supported by over $100 million in new loan originations.
• Net interest income increased by 19.5% to $5.7 million for Q2 2022.

Negative

• Net income for the six months ended June 30, 2022, decreased by 31.5% to $3.0 million.
• Non-interest income for Q2 dropped by 52.4%, significantly impacting overall revenue.
• Stockholders' equity fell by $7.1 million due to a repurchase of shares and comprehensive losses.

TEANECK, N.J.--(BUSINESS WIRE)-- Bogota Financial Corp. (NASDAQ: BSBK) (the “Company”), the holding company for Bogota Savings Bank (the “Bank”), reported net income for the three months ended June 30, 2022 of $1.6 million, compared to net income of $1.4 million for the comparable prior year period. The Company reported net income for the six months ended June 30, 2022 of $3.0 million compared to net income of $4.4 million for the comparable prior year period. During the six months ended June 30, 2021, the Company recorded a bargain purchase gain of $1.9 million, and merger-related expenses of $392,000, each of which was associated with the acquisition of Gibraltar Bank. Excluding the bargain purchase gain and the merger-related expenses in 2021, net income for the six months ended June 31, 2021 was $2.9 million, compared to the $3.0 million for the current-year period.¹

On April 11, 2022, the Company announced it completed its initial 5% buyback plan, purchasing 296,044 shares. On May 25, 2022, the Company announced that it has received regulatory approval for the repurchase of up to 292,568 shares of its common stock, which is approximately 5% of its then outstanding common stock. As of June 30, 2022, the Company had repurchased 145,582 shares under the second buyback plan.

Other Financial Highlights:

• Total assets increased $37.6 million, or 4.5%, to $874.9 million at June 30, 2022 from $837.4 million at December 31, 2021, due to an increase in loans and securities, which was primarily funded by cash and cash equivalents, deposits and borrowings.
• Net loans increased $60.6 million, or 10.6%, to $630.8 million at June 30, 2022 from $570.2 million at December 31, 2021.
• Total deposits were $611.3 million, increasing $13.8 million, or 2.3%, as compared to $597.5 million at December 31, 2021, primarily due to a new $11.0 million municipal deposit relationship. The average rate paid on deposits at June 30, 2022 increased four basis points to 0.65% at June 30, 2022 from 0.61% at December 31, 2021.
• Return on average assets was 0.73% for the six-month period ended June 30, 2022 compared to 1.12% for the comparable period in 2021. Without the bargain purchase gain and merger-related expenses in 2021, the return on average assets would have been 0.74%¹ for the six-month period ended June 30, 2021.
• Return on average equity was 4.26% for the six-month period ended June 30, 2022 compared to 6.46% for the comparable period in 2021. Without the bargain purchase gain and merger-related expenses in 2021, the return on average equity would have been 4.24%¹ for the six-month period ended June 30, 2021.

Joseph Coccaro, President and Chief Executive Officer, said, “We are pleased with our results for the first half of 2022. We had over $100 million in new loan originations which has increased our loan portfolio over $60 million during the year, while continuing to have strong credit quality as non-performing loans and criticized assets remain very low. We continue to see improvement in our net interest margin which rose 29 basis points and 41 basis points as compared to the three and six months ended June 30, 2021 respectively.“

Mr. Coccaro further stated, "During the last year we completed the acquisition of Gibraltar Bank including a business system conversion and opened our sixth branch location in Hasbrouck Heights. This year we expect to grow loan and deposit balances and are forecasting for assets to increase to $900 million. However, forecasted rate hikes, higher inflation and a low inventory in housing continue to present challenges."

[1] This number represents a non-GAAP financial measure. Please see “Reconciliation of GAAP to Non-GAAP” contained at the end of this release.

Income Statement Analysis

Comparison of Operating Results for the Three Months Ended June 30, 2022 and June 30, 2021

Net income increased by $203,000, or 14.1%, to $1.6 million for the three months ended June 30, 2022 from $1.4 million for the three months ended June 30, 2021. The increase was due to an increase in net interest income of $931,000, offset by a decrease in non-interest income of $280,000 and an increase of $154,000 in provision for loan losses.

Interest income on cash and cash equivalents decreased $13,000, or 31.7%, to $28,000 for the three months ended June 30, 2022 from $41,000 for the three months ended June 30, 2021 due to a $79.2 million decrease in the average balance of cash and cash equivalents to $20.7 million for the three months ended June 30, 2022 from $100.0 million for the three months ended June 30, 2021, reflecting the use of excess liquidity to fund loan originations and purchase investment securities. This was offset by a 39 basis point increase in the average yield on cash and cash equivalents from 0.16% for the three months ended June 30, 2021 to 0.55% for the three months ended June 30, 2022 due to the higher interest rate environment.

Interest income on loans increased $164,000, or 2.9%, to $5.8 million for the three months ended June 30, 2022 compared to $5.7 million for the three months ended June 30, 2021 due to a nine basis point increase in the average yield on loans from 3.86% for the three months ended June 30, 2021 to 3.95% for the three months ended June 30, 2022 and by a $2.6 million increase in the average balance of loans to $593.7 million for the three months ended June 30, 2022 from $591.1 million for the three months ended June 30, 2021.

Interest income on securities increased $577,000, or 143.9%, to $979,000 for the three months ended June 30, 2022 from $402,000 for the three months ended June 30, 2021 due to a 29 basis point increase in the average yield from 1.86% for the three months ended June 30, 2021 to 2.15% for the three months ended June 30, 2022. The increase was also due to a $95.7 million increase in the average balance of securities to $182.3 million for the three months ended June 30, 2022 from $86.6 million for the three months ended June 30, 2021, reflecting the purchase of investments with excess liquidity.

Interest expense on interest-bearing deposits decreased $201,000, or 19.1%, to $850,000 for the three months ended June 30, 2022 from $1.1 million for the three months ended June 30, 2021. The decrease was due primarily to a 19 basis point decrease in the average cost of interest-bearing deposits to 0.59% for the three months ended June 30, 2022 from 0.78% for the three months ended June 30, 2021. The decrease in the average cost of deposits was due to lower average balances and lower average costs of certificates of deposit. This decrease was offset by a $40.3 million increase in the average balance of total deposits to $579.2 million for the three months ended June 30, 2022 from $539.0 million for the three months ended June 30, 2021.

Interest expense on Federal Home Loan Bank borrowings decreased $20,000, or 5.4%, from $376,000 for the three months ended June 30, 2021 to $356,000 for the three months ended June 30, 2022. The decrease was due to a decrease in the average balance of borrowings of $13.8 million to $86.4 million for the three months ended June 30, 2022 from $100.3 million for the three months ended June 30, 2021. The decrease was offset by an increase in the average cost of borrowings of nine basis points to 1.59% for the three months ended June 30, 2022 from 1.50% for the three months ended June 30, 2021 due to the higher rates on newer borrowings.

Net interest income increased $930,000, or 19.5%, to $5.7 million for the three months ended June 30, 2022 from $4.8 million for the three months ended June 30, 2021. The increase reflected a 45 basis point increase in our net interest rate spread to 2.73% for the three months ended June 30, 2022 from 2.28% for the three months ended June 30, 2021. Our net interest margin increased 41 basis points to 2.85% for the three months ended June 30, 2022 from 2.44% for the three months ended June 30, 2021.

We recorded a $100,000 provision for loan losses for the three months ended June 30, 2022 compared to a $54,000 credit for the three-month period ended June 30, 2021. Higher balances in residential and construction loans were the reason for the provision for the three months ended June 30, 2022. The Bank continues to have a low level of delinquent and non-accrual loans in the portfolio, as well as no charge-offs.

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 three months ended June 30, 2021. Gain on sale of loans decreased $284,000 as the Bank decided to portfolio loans rather than sell loans. This decrease was offset by a $24,000, or 16.5% increase in bank-owned life insurance to $169,000 for the three months ended June 30, 2022 from $145,000 for the three months ended June 30, 2022.

For the three months ended June 30, 2022, non-interest expense increased $17,000, or 0.5%, over the comparable 2021 period. Salaries and employee benefits increased $64,000, or 3.1%, due to the new stock compensation plan established in September 2021. Data processing expense increased $18,000, or 5.9%, due to higher data processing expense associated with being a larger organization. Professional fees decreased $57,000, or 27.5%, due in part to lower legal expense in 2022. Merger fees expenses were $74,000 in 2021. The increase in occupancy and equipment expenses of $48,000, or 16.2%, was due to increased costs for the acquired Gibraltar Bank branches and the new Hasbrouck Heights branch office.

Comparison of Operating Results for the Six Months Ended June 30, 2022 and June 30, 2021

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 six months ended June 30, 2021. The decrease was due to a decrease in non-interest income of $2.3 million, an increase in non-interest expenses of $126,000, an increase in provision for loan losses of $213,000, and an increase of $284,000 in income taxes offset by an increase in net interest income of $1.5 million. Excluding the one-time bargain purchase gain of $1.9 million that occurred in 2021 in connection with the Gibraltar Bank acquisition and the merger related expenses, net income would have increased $139,000 for the six months ended June 30, 2022 as compared to the comparable period in 2021¹.

Interest income on cash and cash equivalents decreased $34,000, or 37.4%, to $57,000 for the six months ended June 30, 2022 from $91,000 for the six months ended June 30, 2021 due to a $49.6 million decrease in the average balance of cash and cash equivalents to $46.0 million for the six months ended June 30, 2022 from $95.6 million for the six months ended June 30, 2021, reflecting the use of excess liquidity to fund loan originations and purchase investment securities. This was offset by a six basis point increase in the average yield on cash and cash equivalents from 0.19% for the six months ended June 30, 2021 to 0.25% for the six months ended June 30, 2022 due to the higher interest rate environment.

Interest income on loans increased $236,000, or 2.1%, to $11.4 million for the six months ended June 30, 2022 compared to $11.2 million for the six months ended June 30, 2021 due to a nine basis point increase in the average yield on loans from 3.83% for the six months ended June 30, 2021 to 3.92% for the six months ended June 30, 2022 offset by a $2.5 million decrease in the average balance of loans to $582.8 million for the six months ended June 30, 2022 from $585.3 million for the six months ended June 30, 2021.

Interest income on securities increased $550,000, or 51.7%, to $1.6 million for the six months ended June 30, 2022 from $1.1 million for the six months ended June 30, 2021 due to an $82.2 million increase in the average balance of securities to $160.7 million for the six months ended June 30, 2022 from $78.5 million for the six months ended June 30, 2021, reflecting the purchase of investments with excess liquidity. The increase was offset by a 73 basis point decrease in the average yield from 2.77% for the six months ended June 30, 2021 to 2.04% for the six months ended June 30, 2022.

[1] This number represents a non-GAAP financial measure. Please see “Reconciliation of GAAP to Non-GAAP” contained at the end of this release.

Interest expense on interest-bearing deposits decreased $638,000, or 27.6%, to $1.7 million for the six months ended June 30, 2022 from $2.3 million for the six months ended June 30, 2021. The decrease was due primarily to a 31 basis point decrease in the average cost of interest-bearing deposits to 0.59% for the six months ended June 30, 2022 from 0.90% for the six months ended June 30, 2021. The decrease in the average cost of deposits was due to lower average balances and lower average costs of certificates of deposit. This decrease was offset by a $48.9 million increase in the average balance of deposits to $570.2 million for the six months ended June 30, 2022 from $521.3 million for the six months ended June 30, 2021.

Interest expense on Federal Home Loan Bank borrowings decreased $122,000, or 15.1%, from $808,000 for the six months ended June 30, 2021 to $686,000 for the six months ended June 30, 2022. The decrease was due to a decrease in the average balance of borrowings of $19.5 million to $84.4 million for the six months ended June 30, 2022 from $103.9 million for the six months ended June 30, 2021. The decrease was offset by an increase in the average cost of borrowings of seven basis points to 1.64% for the six months ended June 30, 2022 from 1.57% for the six months ended June 30, 2021 due to the higher new rates on borrowings.

Net interest income increased $1.5 million, or 15.8%, to $10.8 million for the six months ended June 30, 2022 from $9.4 million for the six months ended June 30, 2021. The increase reflected a 34 basis point increase in our net interest rate spread to 2.61% for the six months ended June 30, 2022 from 2.27% for the six months ended June 30, 2021. Our net interest margin increased 29 basis points to 2.75% for the six months ended June 30, 2022 from 2.46% for the six months ended June 30, 2021.

We recorded a $100,000 provision for loan losses the six months ended June 30, 2022 compared to a $113,000 credit for the six-month period ended June 30, 2021. Higher balances in residential and construction loans were the reason for the provision for the six months ended June 30, 2022. The Bank continues to have a low level of delinquent and non-accrual loans in the portfolio, as well as no charge-offs.

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 six months ended June 30, 2021. For the six months ended June 30, 2021, there was a $1.9 million bargain purchase gain recognized in the Gibraltar Bank acquisition in 2021. Gain on sale of loans decreased $433,000, or 83.3%, to $87,000 for the six months ended June 30, 2022 from $520,000 for the six months ended June 30, 2021. Bank-owned life insurance income increased $91,000, or 38.6%, to $325,000 for the six months ended June 30, 2022 from $235,000 for the six months ended June 30, 202.

For the six months ended June 30, 2022, non-interest expense increased $126,000, or 1.8%, to $7.1 million, over the comparable 2021 period. Salaries and employee benefits increased $588,000, or 16.4%, due to new stock compensation plan started in September 2021. Data processing expense increased $88,000, or 17.0%, due to higher data processing expense associated with a larger company. Advertising expense increased $92,000 due to additional promotions for branch locations and new promotions. Professional fees decreased $172,000, or 36.8%, due to lower consulting expense. Merger fees and core conversion costs were $752,000 in 2021. The increase in equipment and occupancy expenses of $126,000, or 22.4%, was mainly due to the additional branch locations.

Balance Sheet Analysis

Total assets were $874.9 million at June 30, 2022, representing an increase of $37.6 million, or 4.5%, from December 31, 2021. Cash and cash equivalents decreased $97.5 million during the period primarily due to funding of loan originations and investment purchases with excess liquidity. Net loans increased $60.6 million, or 10.6%, due to new production of $103.1 million, consisting of a mainly residential real estate loans and construction loans offset by $42.5 million in repayments. Securities held to maturity increased $12.4 million due to the purchase of corporate bonds and mortgage-backed securities with excess cash. Securities available for sale increased $55.7 million due to the purchase of mortgage-backed securities and corporate bonds with excess cash. Bank-owned life insurance increased $5.3 million or 21.7% due to a $5.0 million purchase of bank-owned life insurance during the six months ended June 30, 2022.

Delinquent loans increased $94,000, or 23.7%, during the six-month period ended June 30, 2022, finishing at $2.1 million or 0.33% of total loans. During the same timeframe, non-performing assets remained unchanged at $1.9 million and were 0.23% of total assets at June 30, 2022. The Company’s allowance for loan losses was 0.36% of total loans and 120.8% of non-performing loans at June 30, 2022.

Total liabilities increased $44.7 million, or 6.5%, to $734.5 million mainly due to an increase in deposits, reflecting a new $11.0 million municipal relationship and an increase in borrowings. Total deposits increased $13.8 million, or 2.3%, to $611.3 million at June 30, 2022 from $597.5 million at December 31, 2021. The increase in deposits reflected an increase in interest-bearing deposits of $13.7 million, or 2.5%, to $571.8 million as of June 30, 2022 from $558.2 million at December 31, 2021 and an increase in non-interest bearing deposits of $125,000, or 0.3%, to $39.4 million as of June 30, 2022 from $39.3 million as of December 31, 2021. Federal Home Loan Bank advances increased $30.2 million, or 35.5%, due to new advances for loan funding.

Stockholders’ equity decreased $7.1 million to $140.5 million, due to increased accumulated other comprehensive loss for securities for available for sale of $6.5 million and the repurchase of 215,948 shares of stock during the quarter at a cost of $2.4 million, offset by net income of $3.0 million for the six months ended June 30, 2022. At June 30, 2022, the Company’s ratio of average stockholders’ equity-to-total assets was 17.08%, compared to 17.43% at June 30, 2021.

About Bogota Financial Corp.

Bogota Financial Corp. is a Maryland corporation organized as the mid-tier holding company of Bogota Savings Bank and is the majority-owned subsidiary of Bogota Financial, MHC. Bogota Savings Bank is a New Jersey chartered stock savings bank that has served the banking needs of its customers in northern and central New Jersey since 1893. It operates from six offices located in Bogota, Hasbrouck Heights, Newark, Oak Ridge, Parsippany and Teaneck, New Jersey and operates a loan production office in Spring Lake, New Jersey.

Forward-Looking Statements

This press release contains certain forward-looking statements about the Company and the Bank. Forward-looking statements include statements regarding anticipated future events and can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as “believe,” “expect,” “anticipate,” “estimate,” and “intend” or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” Forward-looking statements, by their nature, are subject to risks and uncertainties. Certain factors that could cause actual results to differ materially from expected results include increased competitive pressures, changes in the interest rate environment, inflation, general economic conditions or conditions within the securities markets, changes in the quality of our loan and security portfolios, increases in non-performing and classified loans, and legislative, accounting and regulatory changes that could adversely affect the business in which the Company and the Bank are engaged.

In addition, the COVID-19 pandemic has had, and may continue to have, an adverse impact on the Company, its clients and the communities it serves. Given its ongoing and dynamic nature, it is difficult to predict the full impact of the COVID-19 pandemic on the Company’s business.

The Company undertakes no obligation to revise these forward-looking statements or to reflect events or circumstances after the date of this press release.

BOGOTA FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
		As of				As of
		June 30, 2022				December 31, 2021
Assets		(unaudited)
Cash and due from banks		$	6,781,706			$	14,446,792
Interest-bearing deposits in other banks			822,524				90,621,993
Cash and cash equivalents			7,604,230				105,068,785
Securities available for sale			97,507,693				41,838,798
Securities held to maturity (fair value of $79,858,396 and $74,081,059, respectively)			86,432,340				74,053,099
Loans held for sale			360,000				1,152,500
Loans, net of allowance of $2,253,174 and $2,153,174, respectively			630,810,380				570,209,669
Premises and equipment, net			8,006,717				8,127,979
Federal Home Loan Bank (FHLB) stock and other restricted securities			6,076,700				4,851,300
Accrued interest receivable			3,007,407				2,712,605
Core deposit intangibles			300,827				336,364
Bank-owned life insurance			29,836,866				24,524,122
Other assets			5,001,976				4,486,366
Total Assets		$	874,945,136			$	837,361,587
Liabilities and Equity
Non-interest bearing deposits		$	39,442,245			$	39,317,500
Interest bearing deposits			571,847,021				558,162,278
Total Deposits			611,289,266				597,479,778
FHLB advances			115,278,743				85,051,736
Advance payments by borrowers for taxes and insurance			3,431,613				2,856,120
Other liabilities			4,484,720				4,397,742
Total liabilities			734,484,342				689,785,376
Stockholders’ Equity
Preferred stock $0.01 par value 1,000,000 shares authorized, none issued and outstanding at June 30, 2022 and December 31, 2021			—				—
Common stock $0.01 par value, 30,000,000 shares authorized, 14,207,862 issued and outstanding at June 30, 2022 and 14,605,809 at December 31, 2021			142,078				146,057
Additional paid-in capital			64,401,403				68,247,204
Retained earnings			87,922,716				84,879,812
Unearned ESOP shares (449,977 shares at June 30, 2022 and 463,239 shares at December 31, 2021)			(5,273,604	)			(5,424,206	)
Accumulated other comprehensive loss			(6,731,799	)			(272,656	)
Total stockholders’ equity			140,460,794				147,576,211
Total liabilities and stockholders’ equity		$	874,945,136			$	837,361,587

BOGOTA FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
		Three months ended June 30,								Six months ended June 30,
		2022				2021				2022				2021
Interest income
Loans		$	5,848,522			$	5,684,881			$	11,385,602			$	11,149,842
Securities
Taxable			932,714				388,604				1,569,835				1,062,151
Tax-exempt			46,282				12,798				67,278				25,383
Other interest-earning assets			83,682				115,256				167,495				238,260
Total interest income			6,911,200				6,201,539				13,190,210				12,475,636
Interest expense
Deposits			849,808				1,050,546				1,675,992				2,314,228
FHLB advances			356,203				376,508				686,036				807,633
Total interest expense			1,206,011				1,427,054				2,362,028				3,121,861
Net interest income			5,705,189				4,774,485				10,828,182				9,353,775
Provision (credit) for loan losses			100,000				(54,000	)			100,000				(113,000	)
Net interest income after provision for loan losses			5,605,189				4,828,485				10,728,182				9,466,775
Non-interest income
Fees and service charges			50,478				68,576				89,796				121,103
(Loss) gain on sale of loans			(217	)			284,065				86,913				520,102
Bargain purchase gain			—				—				—				1,933,397
Bank-owned life insurance			169,449				145,167				325,442				234,833
Other			34,007				35,480				95,989				42,459
Total non-interest income			253,717				533,288				598,140				2,851,894
Non-interest expense
Salaries and employee benefits			2,098,897				2,035,467				4,162,244				3,574,387
Occupancy and equipment			342,381				294,694				686,810				561,173
FDIC insurance assessment			54,000				69,300				108,000				114,300
Data processing			330,840				312,527				609,187				520,836
Advertising			91,145				60,000				212,290				120,000
Director fees			203,534				216,880				418,325				415,119
Professional fees			151,490				208,849				295,753				467,766
Merger fees			—				73,932				—				392,197
Core conversion costs			—				—				—				360,000
Other			321,585				305,484				642,538				483,801
Total non-interest expense			3,593,872				3,577,133				7,135,147				7,009,579
Income before income taxes			2,265,034				1,784,640				4,191,175				5,309,090
Income tax expense			623,027				345,916				1,148,271				864,059
Net income		$	1,642,007			$	1,438,724			$	3,042,904			$	4,445,031
Earnings per Share - basic		$	0.12			$	0.10			$	0.22			$	0.33
Earnings per Share - diluted		$	0.12			$	0.10			$	0.22			$	0.33
Weighted average shares outstanding - basic			13,662,222				13,945,423				13,760,002				13,528,822
Weighted average shares outstanding - diluted			13,701,674				13,945,423				13,800,168				13,528,822

BOGOTA FINANCIAL CORP.
SELECTED RATIOS
(unaudited)
	At or For the Three Months Ended June 30,								At or For the Six Months Ended June 30,
	2022				2021				2022				2021
Performance Ratios (1):
Return on average assets (2)		0.95	%			0.70	%			0.73	%			1.12	%
Return on average equity (3)		5.56	%			4.00	%			4.26	%			6.46	%
Interest rate spread (4)		2.73	%			2.28	%			2.61	%			2.27	%
Net interest margin (5)		2.85	%			2.44	%			2.75	%			2.46	%
Efficiency ratio (6)		60.31	%			67.39	%			62.44	%			57.43	%
Average interest-earning assets to average interest-bearing liabilities		120.42	%			122.55	%			121.36	%			122.40	%
Net loans to deposits		103.19	%			102.56	%			103.19	%			102.56	%
Equity to assets (7)		16.05	%			17.43	%			16.05	%			17.43	%
Capital Ratios:
Tier 1 capital to average assets										17.08	%			17.67	%
Asset Quality Ratios:
Allowance for loan losses as a percent of total loans										0.36	%			0.36	%
Allowance for loan losses as a percent of non-performing loans										120.83	%			310.90	%
Net recoveries to average outstanding loans during the period										0.00	%			0.00	%
Non-performing loans as a percent of total loans										0.29	%			0.12	%
Non-performing assets as a percent of total assets										0.21	%			0.08	%

(1)		Performance ratios are annualized.
(2)		Represents net income divided by average total assets.
(3)		Represents net income divided by average stockholders' equity.
(4)		Represents the difference between the weighted average yield on average interest-earning assets and the weighted average cost of average interest-bearing liabilities. Tax exempt income is reported on a tax equivalent basis using a combined federal and state marginal tax rate of 30%.
(5)		Represents net interest income as a percent of average interest-earning assets. Tax exempt income is reported on a tax equivalent basis using a combined federal and state marginal tax rate of 30% for 2022 and 2021.
(6)		Represents non-interest expenses divided by the sum of net interest income and non-interest income.
(7)		Represents average stockholders' equity divided by average total assets.

LOANS

Loans are summarized as follows at June 30, 2022 and December 31, 2021:

		June 30, 2022				December 31, 2021
Real estate:		(unaudited)
Residential		$	379,776,653			$	319,968,234
Commercial and multi-family real estate			173,619,693				175,375,419
Construction			51,799,501				41,384,687
Commercial and industrial			2,068,871				7,905,524
Consumer:
Home equity and other			25,798,836				27,728,979
Total loans			633,063,554				572,362,843
Allowance for loan losses			(2,253,174	)			(2,153,174	)
Net loans		$	630,810,380			$	570,209,669

The following tables set forth the distribution of total deposit accounts, by account type, at the dates indicated.

		At June 30,												At December
		2022												2021
		Amount				Percent				Average Rate				Amount				Percent				Average Rate
		(Dollars in thousands)
Noninterest bearing demand accounts		$	39,627				6.93	%			—	%		$	39,318				6.58	%			—	%
NOW accounts			76,904				12.58				0.60				69,940				11.71			0.82
Money market accounts			58,977				9.65				0.34				57,541				9.63				0.34
Savings accounts			67,915				11.11			0.26					64,285				10.76			0.26
Certificates of deposit			367,866				60.18				0.86				366,396				61.32				0.74
Total		$	611,289				100.00	%			0.65	%		$	597,480				100.00	%			0.61	%

Average Balance Sheets and Related Yields and Rates

The following tables present information regarding average balances of assets and liabilities, the total dollar amounts of interest income and dividends from average interest-earning assets, the total dollar amounts of interest expense on average interest-bearing liabilities, and the resulting annualized average yields and costs. The yields and costs for the periods indicated are derived by dividing income or expense by the average balances of assets or liabilities, respectively, for the periods presented. Average balances have been calculated using daily balances. Nonaccrual loans are included in average balances only. Loan fees are included in interest income on loans and are not material.

		Three Months Ended June 30,
		2022												2021
		Average Balance				Interest and Dividends				Yield/ Cost (3)				Average Balance				Interest and Dividends				Yield/ Cost (3)
		(Dollars in thousands)
Assets:		(unaudited)
Cash and cash equivalents		$	20,723			$	28				0.55	%		$	99,956			$	41				0.16	%
Loans			593,705				5,849				3.95	%			591,134				5,685				3.86	%
Securities			182,338				979				2.15	%			86,594				402				1.86	%
Other interest-earning assets			4,891				55				4.53	%			5,740				74				5.16	%
Total interest-earning assets			801,657				6,911				3.46	%			783,424				6,202				3.17	%
Non-interest-earning assets			54,038												41,827
Total assets		$	855,695											$	825,251
Liabilities and equity:
NOW and money market accounts		$	158,552			$	217				0.55	%		$	99,267			$	142				0.59	%
Savings accounts			66,095				43				0.26	%			64,341				26				0.16	%
Certificates of deposit			354,600				590				0.67	%			375,373				883				0.94	%
Total interest-bearing deposits			579,247				850				0.59	%			538,981				1,051				0.78	%
Federal Home Loan Bank advances			86,445				356				1.59	%			100,289				376				1.50	%
Total interest-bearing liabilities			665,692				1,206				0.73	%			639,270				1,427				0.90	%
Non-interest-bearing deposits			38,132												26,736
Other non-interest-bearing liabilities			5,556												15,421
Total liabilities			709,380												681,427
Total equity			146,315												143,824
Total liabilities and equity		$	855,695											$	825,251
Net interest income						$	5,705											$	4,775
Interest rate spread (1)											2.73	%											2.28	%
Net interest margin (2)											2.85	%											2.44	%
Average interest-earning assets to average interest-bearing liabilities			120.42	%											122.55	%

1. Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.
2. Net interest margin represents net interest income divided by average total interest-earning assets.
3. Annualized.

Rate/Volume Analysis

		Six Months Ended June 30,
		2022												2021
		Average Balance				Interest and Dividends				Yield/ Cost (3)				Average Balance				Interest and Dividends				Yield/ Cost (3)
		(Dollars in thousands)
Assets:
Cash and cash equivalents		$	45,991			$	57				0.25	%		$	95,564			$	91				0.19	%
Loans			582,826				11,386				3.92	%			585,279				11,150				3.83	%
Securities			160,688				1,637				2.04	%			78,485				1,088				2.77	%
Other interest-earning assets			4,864				110				4.54	%			5,919				147				4.98	%
Total interest-earning assets			794,369				13,190				3.33	%			765,247				12,476				3.27	%
Non-interest-earning assets			52,429												35,878
Total assets		$	846,798											$	801,125
Liabilities and equity:
NOW and money market accounts		$	151,044			$	437				0.58	%		$	94,606			$	251				0.54	%
Savings accounts			66,338				86				0.26	%			53,344				48				0.18	%
Certificates of deposit			352,824				1,153				0.66	%			373,355				2,015				1.09	%
Total interest-bearing deposits			570,206				1,676				0.59	%			521,305				2,314				0.90	%
Federal Home Loan Bank advances			84,374				686				1.64	%			103,897				808				1.57	%
Total interest-bearing liabilities			654,580				2,362				0.73	%			625,202				3,122				1.01	%
Non-interest-bearing deposits			40,545												27,820
Other non-interest-bearing liabilities			6,755												9,268
Total liabilities			701,880												662,290
Total equity			144,918												138,835
Total liabilities and equity		$	846,798											$	801,125
Net interest income						$	10,828											$	9,354
Interest rate spread (1)											2.61	%											2.27	%
Net interest margin (2)											2.75	%											2.46	%
Average interest-earning assets to average interest-bearing liabilities			121.36	%											122.40	%

The following table sets forth the effects of changing rates and volumes on net interest income. The rate column shows the effects attributable to changes in rate (changes in rate multiplied by prior volume). The volume column shows the effects attributable to changes in volume (changes in volume multiplied by prior rate). The net column represents the sum of the prior columns. Changes attributable to changes in both rate and volume that cannot be segregated have been allocated proportionally based on the changes due to rate and the changes due to volume.

		Three Months Ended June 30, 2022 Compared to Three Months Ended June 30, 2021												Six Months Ended June 30, 2022 Compared to Six Months Ended June 30, 2021
		Increase (Decrease) Due to												Increase (Decrease) Due to
		Volume				Rate				Net				Volume				Rate				Net
		(In thousands)
Interest income:		(unaudited)
Cash and cash equivalents		$	(195	)		$	182			$	(13	)		$	(92	)		$	58			$	(34	)
Loans receivable			26				138				164				(124	)			360				236
Securities			506				71				577				1,354				(805	)			549
Other interest earning assets			(10	)			(9	)			(19	)			(25	)			(12	)			(37	)
Total interest-earning assets			327				382				709				1,113				(399	)			714
Interest expense:
NOW and money market accounts			139				(64	)			75				165				21				186
Savings accounts			1				16				17				13				25				38
Certificates of deposit			(47	)			(246	)			(293	)			(105	)			(757	)			(862	)
Federal Home Loan Bank advances			(140	)			120				(20	)			(216	)			94				(122	)
Total interest-bearing liabilities			(47	)			(174	)			(221	)			(143	)			(617	)			(760	)
Net increase (decrease) in net interest income		$	374			$	556			$	930			$	1,256			$	218			$	1,474

BOGOTA FINANCIAL CORP.
RECONCILIATION OF GAAP TO NON-GAAP

The Company’s management believes that the presentation of net income on a non-GAAP basis, excluding nonrecurring items, provides useful information for evaluating the Company’s operating results and any related trends that may be affecting the Company’s business. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP.

	Three months ended June 30, 2021
	Income Before Income Taxes				Provision for Income Taxes				Net Income
GAAP basis	$	1,784,640			$	345,916			$	1,438,724
Add: merger-related expenses	$	73,932			$	-			$	73,932
Less: Bargain purchase gain	$	-			$	-			$	-
Non-GAAP basis	$	1,858,572			$	345,916			$	1,512,656
	Six months ended June 30, 2021
	Income Before Income Taxes				Provision for Income Taxes				Net Income
GAAP basis	$	5,309,090			$	864,059			$	4,445,031
Add: merger and acquisition related expenses		392,197				—				392,197
Add: Charitable Foundation Contribution		—				—				—
Less: Bargain purchase gain		(1,933,397	)			—				(1,933,397	)
Non-GAAP basis	$	3,767,890			$	864,059			$	2,903,831
	Six months ended June 30,
Return on average assets (annualized):	2022				2021
GAAP		0.73	%			1.12	%
Adjustments		0.00	%			0.38	%
Non-GAAP		0.73	%			0.74	%
Return on average equity (annualized):
GAAP		4.26	%			6.46	%
Adjustments		0.00	%			2.20	%
Non-GAAP		4.26	%			4.26	%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220727005990/en/

Joseph Coccaro – President & CEO, 201-862-0660 ext. 1110

Source: Bogota Financial Corp.

FAQ

What is Bogota Financial Corp's net income for Q2 2022?

Bogota Financial Corp reported a net income of $1.6 million for Q2 2022.

How did Bogota Financial Corp's assets change by June 30, 2022?

Total assets increased by 4.5% to $874.9 million as of June 30, 2022.

What was the net income for the six months ended June 30, 2022?

Net income for the six months ended June 30, 2022, was $3.0 million, down from $4.4 million in the prior year.

How much did Bogota Financial Corp repurchase in shares?

The company repurchased 145,582 shares under its buyback plan.

What was the increase in net loans for Bogota Financial Corp?

Net loans increased by 10.6% to $630.8 million by June 30, 2022.