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CORRECTION - Bogota Financial Corp. Reports Results for the Three and Nine Months Ended September 30, 2024 Corrected

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Bogota Financial Corp. (NASDAQ: BSBK) issued a correction to its Q3 2024 financial results due to a $300,000 understatement in interest expense on deposits. The corrected figures show a net loss of $367,000 ($0.03 per share) for Q3 2024, compared to a net loss of $29,000 in Q3 2023. For the nine months ended September 30, 2024, the company reported a net loss of $1.2 million ($0.10 per share), versus net income of $1.8 million in the same period of 2023. Total assets increased 4.2% to $978.9 million, while net loans decreased 0.8% to $708.9 million. The company has repurchased 163,790 shares at a cost of $1.2 million under its current buyback program.

Bogota Financial Corp. (NASDAQ: BSBK) ha emesso una correzione ai risultati finanziari del terzo trimestre 2024 a causa di un sottostima di 300.000 dollari nelle spese per interessi sui depositi. I dati corretti mostrano una perdita netta di 367.000 dollari (0,03 dollari per azione) per il terzo trimestre 2024, rispetto a una perdita netta di 29.000 dollari nel terzo trimestre 2023. Nei nove mesi terminati il 30 settembre 2024, la società ha riportato una perdita netta di 1,2 milioni di dollari (0,10 dollari per azione), contro un utile netto di 1,8 milioni di dollari nello stesso periodo del 2023. Gli attivi totali sono aumentati del 4,2% a 978,9 milioni di dollari, mentre i prestiti netti sono diminuiti dello 0,8% a 708,9 milioni di dollari. La società ha riacquistato 163.790 azioni a un costo di 1,2 milioni di dollari nell'ambito del suo attuale programma di riacquisto.

Bogota Financial Corp. (NASDAQ: BSBK) emitió una corrección a sus resultados financieros del tercer trimestre de 2024 debido a una subestimación de 300,000 dólares en gastos de intereses sobre depósitos. Las cifras corregidas muestran una pérdida neta de 367,000 dólares (0.03 dólares por acción) para el tercer trimestre de 2024, en comparación con una pérdida neta de 29,000 dólares en el tercer trimestre de 2023. Para los nueve meses finalizados el 30 de septiembre de 2024, la compañía reportó una pérdida neta de 1.2 millones de dólares (0.10 dólares por acción), frente a un ingreso neto de 1.8 millones de dólares en el mismo período de 2023. Los activos totales aumentaron un 4.2% a 978.9 millones de dólares, mientras que los préstamos netos disminuyeron un 0.8% a 708.9 millones de dólares. La compañía ha recomprado 163,790 acciones a un costo de 1.2 millones de dólares bajo su actual programa de recompra.

보고타 금융 공사 (NASDAQ: BSBK)는 예치금에 대한 이자 비용이 30만 달러 과소 추정되어 2024년 3분기 재무 결과를 수정했습니다. 수정된 수치는 2024년 3분기에 36만 7천 달러 (주당 0.03달러)의 순손실을 보여주며, 이는 2023년 3분기의 2만 9천 달러 순손실과 비교됩니다. 2024년 9월 30일 종료된 9개월 동안 회사는 120만 달러 (주당 0.10달러)의 순손실을 보고했으며, 이는 2023년 같은 기간의 180만 달러 순이익에 비해 감소한 것입니다. 총 자산은 4.2% 증가하여 9억 789만 달러에 달했으며, 반면 순대출은 0.8% 감소하여 7억 890만 달러가 되었습니다. 회사는 현재의 자사주 매입 프로그램에 따라 163,790주를 120만 달러에 재구매했습니다.

Bogota Financial Corp. (NASDAQ: BSBK) a publié une correction de ses résultats financiers du troisième trimestre 2024 en raison d'une sous-estimation de 300 000 dollars des charges d'intérêts sur les dépôts. Les chiffres corrigés montrent une perte nette de 367 000 dollars (0,03 dollar par action) pour le troisième trimestre 2024, comparativement à une perte nette de 29 000 dollars au troisième trimestre 2023. Pour les neuf mois se terminant le 30 septembre 2024, la société a déclaré une perte nette de 1,2 million de dollars (0,10 dollar par action), contre un bénéfice net de 1,8 million de dollars pour la même période de 2023. Les actifs totaux ont augmenté de 4,2 % pour atteindre 978,9 millions de dollars, tandis que les prêts nets ont diminué de 0,8 % pour atteindre 708,9 millions de dollars. L'entreprise a racheté 163 790 actions pour un coût de 1,2 million de dollars dans le cadre de son programme de rachat actuel.

Bogota Financial Corp. (NASDAQ: BSBK) hat eine Korrektur zu seinen finanziellen Ergebnissen des dritten Quartals 2024 veröffentlicht, da die Zinsaufwendungen für Einlagen um 300.000 Dollar zu niedrig angegeben wurden. Die korrigierten Zahlen zeigen einen Nettoverlust von 367.000 Dollar (0,03 Dollar pro Aktie) für das dritte Quartal 2024, verglichen mit einem Nettoverlust von 29.000 Dollar im dritten Quartal 2023. Für die neun Monate bis zum 30. September 2024 berichtete das Unternehmen von einem Nettoverlust von 1,2 Millionen Dollar (0,10 Dollar pro Aktie), im Vergleich zu einem Nettoergebnis von 1,8 Millionen Dollar im selben Zeitraum 2023. Die Gesamtvermögenswerte stiegen um 4,2% auf 978,9 Millionen Dollar, während die Netto-Kredite um 0,8% auf 708,9 Millionen Dollar sanken. Das Unternehmen hat im Rahmen seines aktuellen Rückkauffprogramms 163.790 Aktien zu einem Preis von 1,2 Millionen Dollar zurückgekauft.

Positive
  • Total assets increased 4.2% to $978.9 million
  • Securities portfolio increased 33.3% to $188.7 million
  • Total deposits increased by $3.9 million to $629.3 million
Negative
  • Net loss of $367,000 in Q3 2024, compared to $29,000 loss in Q3 2023
  • Net interest income decreased 17.4% to $2.7 million in Q3 2024
  • Net interest margin decreased 32 basis points to 1.15%
  • Net loans decreased 0.8% to $708.9 million
  • Cost of deposits increased 128 basis points to 3.95%

Insights

The correction of $300,000 in understated interest expense reveals significant financial challenges at Bogota Financial Corp. The bank's net loss widened to $367,000 for Q3 2024, with EPS deteriorating from -$0.01 to -$0.03. The net interest margin compressed to 1.15% from 1.24%, while the efficiency ratio deteriorated to 120.78%.

Key concerns include rising deposit costs, with average CD rates jumping to 4.39% from 4.15%. Total assets grew 4.2% to $978.9M, but net loans decreased 0.8%. The increased reliance on expensive FHLB advances ($202.6M, up 20.8%) and higher-cost deposits is pressuring margins significantly.

TEANECK, N.J., Nov. 01, 2024 (GLOBE NEWSWIRE) -- Bogota Financial Corp. (NASDAQ: BSBK) (the “Company”), the holding company of Bogota Savings Bank (the “Bank”), after market close today issued a correction to its financial results for the three and nine months ended September 30, 2024 (the “Revised Earnings Release”), which was issued prior to market open on November 1, 2024 (the “Original Earnings Release”). Interest expense on deposits (and similarly total interest expense) for the three and nine months ended September 30, 2024 reported in the Original Earnings Release was understated by $300,000 due to a misstatement of the rates paid on certain certificates of deposit during the three months ended September 30, 2024. As a result, the Revised Earnings Release reflects the following changes:

At September 30, 2024

  Average rate for certificates of depositAverage rate
for deposits		 
 As Initially Reported4.15%3.55% 
 As Corrected4.39%3.95% 
     

For Three Months Ended September 30, 2024

(Dollars in thousands, except per share data)Interest paid on average certificates of depositInterest paid on average interest-bearing depositsNet interest incomeNet interest income after provision (recovery) for credit losses(Loss) income before income taxesIncome tax (benefit) expenseNet (loss) income(Loss) earnings per common share – basic(Loss) earnings per common share – diluted
As Initially Reported$5,327$5,861$2,957$2,957$(320)$(173)$(147)$(0.01)$(0.01)
As Corrected$5,627$6,161$2,657$2,657$(620)$(253)$(367)$(0.03)$(0.03)
                        


 Cost of average certificates of depositCost of average interest-bearing deposits(Loss) Return on Average Assets(Loss) Return on Average EquityInterest rate spreadNet interest marginEfficiency Ratio
As Initially Reported4.26%3.84%(0.09)%(0.72)%0.81%1.24%109.75%
As Corrected4.50%4.04%(0.07)%(0.52)%0.66%1.15%120.78%
               

For Nine Months Ended September 30, 2024

(Dollars in thousands, except per share data)Interest paid on average certificates of depositInterest paid on average interest-bearing depositsNet interest incomeNet interest income after provision (recovery) for credit losses(Loss) income before income taxesIncome tax (benefit) expenseNet (loss) income(Loss) earnings per common share – basic(Loss) earnings per common share – diluted
As Initially Reported$16,484$18,085$8,352$8,282$(1,762)$(741)$(1,020)$(0.08)$(0.08)
As Corrected$16,784$18,385$8,052$7,982$(2,062)$(821)$(1,240)$(0.10)$(0.10)
                        
                        


 Cost of average certificates of depositCost of average interest-bearing deposits(Loss) Return on Average Assets(Loss) Return on Average EquityInterest rate spreadNet interest marginEfficiency Ratio
As Initially Reported4.31%3.88%(0.17)%(1.23)%0.73%1.23%118.23%
As Corrected4.39%3.95%(0.20)%(1.44)%0.68%1.18%122.18%
               

The full text of the corrected release is a follows:

Teaneck, New Jersey, November 1, 2024 – Bogota Financial Corp. (NASDAQ: BSBK) (the “Company”), the holding company for Bogota Savings Bank (the “Bank”), reported a net loss for the three months ended September 30, 2024 of $367,000, or $0.03 per basic and diluted share, compared to a net loss of $29,000, or $0.00 per basic and diluted share, for the comparable prior year period. The Company reported a net loss for the nine months ended September 30, 2024 of $1.2 million, or $0.10 per basic and diluted share, compared to net income of $1.8 million, or $0.14 per basic and diluted share, for the nine months ended September 30, 2023.

On April 24, 2024, the Company announced it had received regulatory approval for the repurchase of up to 237,090 shares of its common stock, or approximately 5% of its then outstanding common stock (excluding shares held by Bogota Financial, MHC). The repurchase program does not have a scheduled expiration date and the Board of Directors has the right to suspend or discontinue the program at any time. As of September 30, 2024, 163,790 shares have been repurchased pursuant to the program at a cost of $1.2 million.

Other Financial Highlights:

  • Total assets increased $39.6 million, or 4.2%, to $978.9 million at September 30, 2024 from $939.3 million at December 31, 2023, due to an increase in securities, offset by a decrease in cash and cash equivalents and loans.
  • Cash and cash equivalents decreased $3.9 million, or 15.8%, to $21.0 million at September 30, 2024 from $24.9 million at December 31, 2023 as excess funds were used to purchase securities.
  • Securities increased $47.1 million, or 33.3%, to $188.7 million at September 30, 2024 from $141.5 million at December 31, 2023.
  • Net loans decreased $5.8 million, or 0.8%, to $708.9 million at September 30, 2024 from $714.7 million at December 31, 2023.
  • Total deposits at September 30, 2024 were $629.3 million, increasing $3.9 million, or 0.6%, as compared to $625.3 million at December 31, 2023, due to a $2.3 million increase in interest-bearing deposits, primarily in certificates of deposit, and a $1.6 million increase in non-interest bearing demand accounts. The average cost of deposits increased 128 basis points to 3.95% for the first three quarters of 2024 from 2.67% for the first nine months of 2023 due to higher interest rates and a larger percentage of deposits consisting of higher-costing certificates of deposit.
  • Federal Home Loan Bank advances increased $34.9 million, or 20.8% to $202.6 million at September 30, 2024 from $167.7 million as of December 31, 2023.

Kevin Pace, President and Chief Executive Officer, said “The Bank continues its growth strategy focusing on core deposits and commercial lending. We have seen an uptick in our commercial pipeline this quarter that shows interest remains strong in our market. Offering new desirable technology through partnerships with our providers is a key initiative we are focusing on going into 2025.  This will allow us to attract new customers in our competitive environment.”

"The Bank completed its third stock repurchase program earlier this year and promptly began its fourth buyback. We remain diligent in our efforts to show confidence and deliver value to our shareholders."

Income Statement Analysis

Comparison of Operating Results for the Three Months Ended September 30, 2024 and September 30, 2023

Net income decreased by $338,000 to a net loss of $367,000 for the three months ended September 30, 2024 from a net loss of $29,000 for the three months ended September 30, 2023. This decrease was primarily due to a decrease of $560,000 in net interest income, partially offset by a decrease of $171,000 in salaries and employee benefit costs, an increase of $128,000 in income tax benefit and a $38,000 increase in non-interest income.

Interest income increased $1.3 million, or 14.3%, from $9.3 million for the three months ended September 30, 2023 to $10.6 million for the three months ended September 30, 2024 primarily due to higher yields on interest-earning assets and an increase in the average balance of securities. 

Interest income on cash and cash equivalents decreased $30,000, or 17.9%, to $138,000 for the three months ended September 30, 2024 from $168,000 for the three months ended September 30, 2023 due to a $2.6 million decrease in the average balance to $10.2 million for the three months ended September 30, 2024 from $12.8 million for the three months ended September 30, 2023, reflecting the use of excess cash to purchase securities. The decrease was offset by an 18 basis point increase in the average yield from 5.21% for the three months ended September 30, 2023 to 5.39% for the three months ended September 30, 2024 due to the higher interest rate environment.

Interest income on loans increased $401,000, or 5.0%, to $8.4 million for the three months ended September 30, 2024 compared to $8.0 million for the three months ended September 30, 2023 due primarily to a 24 basis point increase in the average yield from 4.45% for the three months ended September 30, 2023 to 4.69% for the three months ended September 30, 2024, and to a lesser extent, a $876,000 increase in the average balance to $711.6 million for the three months ended September 30, 2024 from $710.7 million for the three months ended September 30, 2023.

Interest income on securities increased $889,000, or 88.2%, to $1.9 million for the three months ended September 30, 2024 from $1.0 million for the three months ended September 30, 2023 primarily due to a $48.7 million increase in the average balance to $187.2 million for the three months ended September 30, 2024 from $138.5 million for the three months ended September 30, 2023, and a 114 basis point increase in the average yield from 2.91% for the three months ended September 30, 2023 to 4.05% for the three months ended September 30, 2024 due to the higher interest rate environment. 

Interest expense increased $1.9 million, or 31.1%, from $6.1 million for the three months ended September 30, 2023 to $8.0 million for the three months ended September 30, 2024 due to higher costs and average balances on certificates of deposit and borrowings.

Interest expense on interest-bearing deposits increased $1.3 million, or 27.0%, to $6.2 million for the three months ended September 30, 2024 from $4.9 million for the three months ended September 30, 2023. The increase was due to a 93 basis point increase in the average cost of deposits to 4.04% for the three months ended September 30, 2024 from 3.11% for the three months ended September 30, 2023. The increase in the average cost of deposits was due to the higher interest rate environment and a change in the composition of the deposit portfolio.  The average balances of certificates of deposit decreased $831,000 to $497.3 million for the three months ended September 30, 2024 from $498.1 million for the three months ended September 30, 2023 while the average balance of NOW/money market accounts and savings accounts decreased $9.0 million and $2.1 million for the three months ended September 30, 2024, respectively, compared to the three months ended September 30, 2023.

Interest expense on Federal Home Loan Bank advances increased $582,000, or 47.7%, from $1.2 million for the three months ended September 30, 2023 to $1.8 million for the three months ended September 30, 2024. The increase was primarily due to an increase in the average balance of $71.6 million to $196.9 million for the three months ended September 30, 2024 from $125.3 million for the three months ended September 30, 2023. The increase was slightly offset by a decrease in the average cost of borrowings of 22 basis points to 3.64% for the three months ended September 30, 2024 from 3.86% for the three months ended September 30, 2023 due to new borrowings being at lower rates. At September 30, 2024, cash flow hedges used to manage interest rate risk had a notional value of $65.0 million, while fair value hedges totaled $60.0 million in notional value. During the three months ended September 30, 2024, the use of the cash flow and fair value hedges reduced the interest expense on the Federal Home Loan Bank advances and certificates of deposit by $498,000.

Net interest income decreased $560,000, or 17.4%, to $2.7 million for the three months ended September 30, 2024 from $3.2 million for the three months ended September 30, 2023.  The decrease reflected a 35 basis point decrease in our net interest rate spread to 0.66% for the three months ended September 30, 2024 from 1.01% for the three months ended September 30, 2023. Our net interest margin decreased 32 basis points to 1.15% for the three months ended September 30, 2024 from 1.47% for the three months ended September 30, 2023.

We did not record a provision for credit losses for the three months ended September 30, 2024 or September 30, 2023 due to moderate loan growth and improved economic conditions.

Non-interest income increased by $38,000, or 13.0%, to $327,000 for the three months ended September 30, 2024 from $290,000 for the three months ended September 30, 2023.  Bank-owned life insurance income increased $23,000, or 11.6%, due to higher balances during 2024 and gain on sale of loans increased $12,000 compared to no gain on sale of loans for the comparable period last year due to the sale of a $400,000 residential loan in 2024.

For the three months ended September 30, 2024, non-interest expense decreased $56,000, or 1.5%, over the comparable 2023 period. This was due to a $171,000, or 7.5% reduction in salaries and employee benefits, which decreased due to lower headcount and increased expenses in 2023 related to the retirement of the previous Chief Executive Officer, and a $40,000, or 31.9%, decrease in advertising expenses.  Our FDIC insurance assessment also decreased by $26,000, or 19.8%.  These decreases were partially offset by an increase in professional fees of $99,000, or 66.4%, due to higher consulting expense related to strategic business planning. Data processing expense also increased $100,000, or 48.8%, due to higher processing costs.

Income tax expense decreased $128,000, or 102.1%, to a benefit of $253,000 for the three months ended September 30, 2024 from a $125,000 benefit for the three months ended September 30, 2023. The decrease was due to a reduction of $466,000 in taxable income. 

Comparison of Operating Results for the Nine Months Ended September 30, 2024 and September 30, 2023

Net income decreased by $3.1 million, or 168.1%, to a net loss of $1.2 million for the nine months ended September 30, 2024 from net income of $1.8 million for the nine months ended September 30, 2023.   This decrease was primarily due to a decrease of $4.0 million in net interest income, partially offset by a decrease of $1.2 million in income tax expense.

Interest income increased $3.4 million, or 12.4%, from $27.7 million for the nine months ended September 30, 2023 to $31.1 million for the nine months ended September 30, 2024 due to higher yields on interest-earning assets and an increase in the average balance of securities, partially offset by a decrease in the average balance of loans and cash and cash equivalents. 

Interest income on cash and cash equivalents decreased $8,000, or 1.9%, to $415,000 for the nine months ended September 30, 2024 from $423,000 for the nine months ended September 30, 2023 due a $2.3 million decrease in the average balance to $9.1 million for the nine months ended September 30, 2024 from $11.4 million for the nine months ended September 30, 2023, reflecting the decrease of liquidity due to increased securities purchases. This decrease was offset by a 111 basis point increase in the average yield due to the higher interest rate environment.

Interest income on loans increased $1.1 million, or 4.5%, to $24.9 million for the nine months ended September 30, 2024 compared to $23.8 million for the nine months ended September 30, 2023 due primarily to a 20 basis point increase in the average yield from 4.46% for the nine months ended September 30, 2023 to 4.66% for the nine months ended September 30, 2024, offset by a $1.9 million decrease in the average balance to $711.7 million for the nine months ended September 30, 2024 from $713.6 million for the nine months ended September 30, 2023.

Interest income on securities increased $2.2 million, or 69.4%, to $5.3 million for the nine months ended September 30, 2024 from $3.1 million for the nine months ended September 30, 2023 primarily due to a 112 basis point increase in the average yield from 2.80% for the nine months ended September 30, 2023 to 3.92% for the nine months ended September 30, 2024, and a $31.0 million increase in the average balance to $179.8 million for the nine months ended September 30, 2024 from $148.8 million for the nine months ended September 30, 2023.

Income from other interest-earning assets, which primarily consisted of Federal Home Loan Bank stock, increased $209,000, or 27.1% to $981,000 for the nine months ended September 30, 2024 from $772,000 for the nine months ended September 30, 2023 due to dividends paid on such stock.

Interest expense increased $7.4 million, or 47.4%, from $15.7 million for the nine months ended September 30, 2023 to $23.1 million for the nine months ended September 30, 2024 due to higher costs and average balances on certificates of deposit and borrowings.

Interest expense on interest-bearing deposits increased $5.6 million, or 43.9%, to $18.4 million for the nine months ended September 30, 2024 from $12.8 million for the nine months ended September 30, 2023. The increase was due to a 128 basis point increase in the average cost of deposits to 3.95% for the nine months ended September 30, 2024 from 2.67% for the nine months ended September 30, 2023. The increase in the average cost of deposits was due to the higher interest rate environment and a change in the composition of the deposit portfolio.  The average balances of certificates of deposit increased $12.0 million to $510.5 million for the nine months ended September 30, 2024 from $498.5 million for the nine months ended September 30, 2023 while average NOW/money market accounts and savings accounts decreased $24.2 million and $5.7 million for the nine months ended September 30, 2024, respectively, compared to the nine months ended September 30, 2023.

Interest expense on Federal Home Loan Bank advances increased $1.8 million, or 62.7%, from $2.9 million for the nine months ended September 30, 2023 to $4.7 million for the nine months ended September 30, 2024. The increase was primarily due to an increase in the average balance of $60.7 million to $171.6 million for the nine months ended September 30, 2024 from $110.9 million for the nine months ended September 30, 2023. The increase was also due to an increase in the average cost of borrowings of 17 basis points to 3.67% for the nine months ended September 30, 2024 from 3.50% for the nine months ended September 30, 2023 due to new borrowings being at higher rates. At September 30, 2024, cash flow hedges used to manage interest rate risk had a notional value of $65.0 million, while fair value hedges totaled $60.0 million in notional value. During the nine months ended September 30, 2024, the use of the cash flow hedges reduced the interest expense on the Federal Home Loan Bank advances and certificates of deposit by $1.2 million.

Net interest income decreased $4.0 million, or 33.1%, to $8.0 million for the nine months ended September 30, 2024 from $12.0 million for the nine months ended September 30, 2023.  The decrease reflected a 73 basis point decrease in our net interest rate spread to 0.68% for the nine months ended September 30, 2024 from 1.41% for the nine months ended September 30, 2023. Our net interest margin decreased 64 basis points to 1.18% for the nine months ended September 30, 2024 from 1.82% for the nine months ended September 30, 2023.

We recorded a $70,000 provision for credit losses for the nine months ended September 30, 2024 compared to a $125,000 recovery for credit losses for the nine-month period ended September 30, 2023, which was due to a decrease in loan balances in 2023. The entire provision in the first three quarters of 2024 was due to an increase in held-to-maturity corporate securities.

Non-interest income increased by $73,000, or 8.5%, to $929,000 for the nine months ended September 30, 2024 from $856,000 for the nine months ended September 30, 2023.  The increase was primarily due to bank-owned life insurance income, which increased $74,000, or 12.9%, due to higher balances during 2024.

For the nine months ended September 30, 2024, non-interest expense increased $163,000, or 1.5%, over the comparable 2023 period. Professional fees increased $270,000, or 65.5% due to higher consulting expense related to strategic business planning. Data processing expense increased $210,000, or 29.3%, due to higher processing costs. These were offset by a $333,000, or 4.9%, reduction in salaries and employee benefit, which decreased due to lower headcount and increased expenses in 2023 related to the retirement of the previous Chief Executive Officer.

Income tax expense decreased $1.2 million, or 312.9%, to a benefit of $821,000 for the nine months ended September 30, 2024 from a $386,000 expense for the nine months ended September 30, 2023. The decrease was due to a reduction of $4.3 million in taxable income. 

Balance Sheet Analysis

Total assets were $978.9 million at September 30, 2024, representing an increase of $39.6 million, or 4.2%, from December 31, 2023.  Cash and cash equivalents decreased $3.9 million during the period primarily due to the purchase of new securities offset by loan repayments. Net loans decreased $5.8 million, or 0.8%, due to $22.5 million in repayments including a $12.6 million decrease in the balance of residential loans, as well as a $9.1 million decrease in the balance of construction loans and a decrease of $915,000 in multifamily loans. The decrease was partially offset by new production of $16.7 million, including $13.1 million and $3.6 million of commercial real estate and commercial and industrial loans, respectively.  The Company also purchased a pool of residential loans totaling $10.4 million. Due to the interest rate environment, we have experienced a decrease in demand for residential and construction loans, which have been primary drivers of our loan growth in recent periods.  Securities held to maturity increased $7.4 million, or 10.3%, and securities available for sale increased $40.0 million, or 57.6%, due to new purchases of mortgage-backed securities with excess cash. 

Delinquent loans increased $8.9 million to $21.5 million, or 3.0% of total loans, at September 30, 2024, compared to $12.6 million, or 1.8% of total loans, at December 31, 2023. The increase was mostly due to four commercial real estate loans to three customers with a balance of $8.1 million. Three of the past due commercial real estate loans are being actively managed with the customers and are expected to be brought current, while one totaling $758,000 has been placed on nonaccrual, but is considered well-secured with a loan-to-value of 59%. During the same timeframe, non-performing assets increased from $12.8 million at December 31, 2023 to $13.8 million, which represented 1.41% of total assets at September 30, 2024. No loans were charged-off during the three or nine months ended September 30, 2024 or September 30, 2023. The Company’s allowance for credit losses related to loans was 0.39% of total loans and 19.94% of non-performing loans at September 30, 2024 compared to 0.39% of total loans and 21.81% of non-performing loans at December 31, 2023.  The Bank does not have any exposure to commercial real estate loans secured by office space. At September 30, 2024, the Company's allowance for credit losses related to held-to-maturity securities totaled $108,000 or 0.13% of the total held-to-maturity securities portfolio.

Total liabilities increased $39.8 million, or 5.0%, to $841.9 million mainly due to a $34.9 million increase in borrowings and a $3.9 million increase in total deposits. The increase in deposits reflected an increase in certificate of deposit accounts, which increased by $505,000 to $493.8 million from $493.3 million at December 31, 2023, an increase in NOW deposit accounts, which increased by $4.2 million to $45.5 million from $41.3 million at December 31, 2023, and by an increase in noninterest bearing demand accounts, which increased by $1.6 million from $30.6 million at December 31, 2023 to $32.1 million at September 30, 2024. This was offset by a $2.6 million, or 18.0%, decrease in money market accounts.  At September 30, 2024, brokered deposits were $101.1 million or 16.1% of deposits and municipal deposits were $36.0 million or 5.7% of deposits.  At September 30, 2024, uninsured deposits represented 10.7% of the Bank’s total deposits. Federal Home Loan Bank advances increased $34.9 million, or 20.8%, due to new borrowings, for which the durations have primarily been short-term in nature as we remain mindful of the changing interest rate environment and the potential for further interest rate cuts from the Federal Reserve. Total borrowing capacity at the Federal Home Loan Bank is $297.9 million of which $202.7 million has been advanced.

Total stockholders’ equity decreased $233,000 to $136.9 million, due to a net loss of $1.2 million and the repurchase of 163,790 shares of stock at a cost of $1.2 million, offset by a decrease in accumulated other comprehensive loss for securities available for sale of $1.6 million and stock compensation of $225,000 for the nine months ended September 30, 2024. At September 30, 2024, the Company’s ratio of average stockholders’ equity-to-total assets was 15.04%, compared to 15.32% at December 31, 2023.

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 seven offices located in Bogota, Hasbrouck Heights, Upper Saddle River, 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, real estate market values in the Bank’s lending area, changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio; the availability of low-cost funding; our continued reliance on brokered and municipal deposits; demand for loans in our market area; changes in the quality of our loan and security portfolios, economic assumptions or changes in our methodology, either of which may impact our allowance for credit losses calculation, increases in non-performing and classified loans, monetary and fiscal policies of the U.S. Government including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System, a failure in or breach of the Company’s operational or security systems or infrastructure, including cyberattacks, the failure to maintain current technologies, failure to retain or attract employees and legislative, accounting and regulatory changes that could adversely affect the business in which the Company and the Bank are engaged.
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
(unaudited)
      
 As of  As of 
 September 30, 2024  December 31, 2023 
Assets       
Cash and due from banks$10,630,086  $13,567,115 
Interest-bearing deposits in other banks 10,372,434   11,362,356 
Cash and cash equivalents 21,002,520   24,929,471 
Securities available for sale, at fair value 108,560,811   68,888,179 
Securities held to maturity, net of allowance for securities credit losses of $108,000 and zero, respectively (fair value - $74,603,097 and $65,374,753, respectively) 80,103,753   72,656,179 
Loans, net of allowance for credit losses of $2,747,949 and $2,785,949, respectively 708,896,566   714,688,635 
Premises and equipment, net 7,853,076   7,687,387 
Federal Home Loan Bank (FHLB) stock and other restricted securities 10,180,100   8,616,100 
Accrued interest receivable 4,352,967   3,932,785 
Core deposit intangibles 165,454   206,116 
Bank-owned life insurance 31,635,988   30,987,851 
Other assets 6,138,029   6,731,500 
Total Assets$978,889,264  $939,324,203 
Liabilities and Equity       
Non-interest bearing deposits$32,125,742  $30,554,842 
Interest bearing deposits 597,141,995   594,792,300 
Total deposits 629,267,737   625,347,142 
FHLB advances-short term 53,500,000   37,500,000 
FHLB advances-long term 149,065,610   130,189,663 
Advance payments by borrowers for taxes and insurance 3,265,262   2,733,709 
Other liabilities 6,850,898   6,380,486 
Total liabilities 841,949,507   802,151,000 
        
Stockholders’ Equity       
Preferred stock $0.01 par value 1,000,000 shares authorized, none issued and outstanding at September 30, 2024 and December 31, 2023 —   — 
Common stock $0.01 par value, 30,000,000 shares authorized, 13,092,357 issued and outstanding at September 30, 2024 and 13,279,230 at December 31, 2023 130,823   132,792 
Additional paid-in capital 55,315,975   56,149,915 
Retained earnings 90,936,649   92,177,068 
Unearned ESOP shares (389,674 shares at September 30, 2024 and 409,750 shares at December 31, 2023) (4,595,895)  (4,821,798)
Accumulated other comprehensive loss (4,847,795)  (6,464,774)
Total stockholders’ equity 136,939,757   137,173,203 
Total liabilities and stockholders’ equity$978,889,264  $939,324,203 
 


BOGOTA FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
 
 Three Months Ended  Nine Months Ended 
 September 30,  September 30, 
 2024  2023  2024  2023 
Interest income               
Loans, including fees$8,381,581  $7,980,388  $24,888,377  $23,821,545 
Securities               
Taxable 1,884,276   994,791   5,247,336   3,042,389 
Tax-exempt 13,137   13,159   39,409   78,293 
Other interest-earning assets 341,268   301,081   980,536   771,584 
Total interest income 10,620,262   9,289,419   31,155,658   27,713,811 
Interest expense               
Deposits 6,160,547   4,851,926   18,384,323   12,777,907 
FHLB advances 1,802,387   1,220,166   4,719,056   2,900,359 
Total interest expense 7,962,934   6,072,092   23,103,379   15,678,266 
Net interest income 2,657,328   3,217,327   8,052,279   12,035,545 
Provision (recovery) for credit losses —   —   70,000   (125,000)
Net interest income after provision (recovery) for credit losses 2,657,328   3,217,327   7,982,279   12,160,545 
Non-interest income               
Fees and service charges 56,610   61,529   164,400   159,381 
Gain on sale of loans 11,710   —   11,710   29,375 
Bank-owned life insurance 221,122   197,873   648,137   574,073 
Other 37,943   30,332   105,420   93,660 
Total non-interest income 327,385   289,734   929,667   856,489 
Non-interest expense               
Salaries and employee benefits 2,102,993   2,274,347   6,404,946   6,737,952 
Occupancy and equipment 380,714   372,626   1,118,739   1,114,170 
FDIC insurance assessment 106,313   132,571   313,626   319,690 
Data processing 306,167   205,721   928,292   717,913 
Advertising 85,750   126,000   310,950   369,383 
Director fees 159,851   159,336   467,100   478,011 
Professional fees 248,420   149,251   682,517   412,519 
Other 214,686   241,530   747,598   661,300 
Total non-interest expense 3,604,894   3,661,382   10,973,768   10,810,938 
(Loss) income before income taxes (620,181)  (154,321)  (2,061,822)  2,206,096 
Income tax (benefit) expense (253,221)  (125,268)  (821,403)  385,801 
Net (loss) income$(366,960) $(29,053) $(1,240,419) $1,820,295 
(Loss) earnings per Share - basic$(0.03) $(0.00) $(0.10) $0.14 
(Loss) earnings per Share - diluted$(0.03) $(0.00) $(0.10) $0.14 
Weighted average shares outstanding - basic 12,702,683   13,037,903   12,702,683   13,103,951 
Weighted average shares outstanding - diluted 12,717,904   13,037,903   12,734,624   13,103,951 
                


BOGOTA FINANCIAL CORP.
SELECTED RATIOS
(unaudited)
      
 At or For the Three Months  At or for the Nine Months 
 Ended September 30,  Ended September 30, 
 2024  2023  2024  2023 
Performance Ratios (1):               
(Loss) return on average assets (2) (0.07)%  (0.01)%  (0.20)%  0.26%
(Loss) return on average equity (3) (0.52)%  (0.08)%  (1.44)%  1.75%
Interest rate spread (4) 0.66%  1.01%  0.68%  1.41%
Net interest margin (5) 1.15%  1.47%  1.18%  1.82%
Efficiency ratio (6) 120.78%  104.40%  122.18%  83.05%
Average interest-earning assets to average interest-bearing liabilities 114.30%  116.68%  114.62%  117.21%
Net loans to deposits 110.67%  110.08%  114.43%  110.08%
Average equity to average assets (7) 14.01%  15.00%  14.14%  14.88%
Capital Ratios:               
Tier 1 capital to average assets         13.47%  15.67%
Asset Quality Ratios:               
Allowance for credit losses as a percent of total loans         0.39%  0.39%
Allowance for credit losses as a percent of non-performing loans         19.94%  22.62%
Net charge-offs to average outstanding loans during the period         0.00%  0.00%
Non-performing loans as a percent of total loans         1.94%  1.73%
Non-performing assets as a percent of total assets         1.41%  1.33%
                
(1) Certain performance ratios for the three and nine months ended September 30, 2024 and 2023 are annualized.
(2) Represents net (loss) income divided by average total assets.
(3) Represents net (loss) 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 27.5% for 2024 and 2023.
(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 27.5% for 2024 and 2023.
(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 September 30, 2024 and December 31, 2023:

 
 September 30,  December 31, 
 2024  2023 
 (unaudited) 
Real estate:       
Residential First Mortgage$473,492,871  $486,052,422 
Commercial Real Estate 112,899,496   99,830,514 
Multi-Family Real Estate 74,697,352   75,612,566 
Construction 40,243,916   49,302,040 
Commercial and Industrial 10,229,503   6,658,370 
Consumer 81,377   18,672 
Total loans 711,644,515   717,474,584 
Allowance for credit losses (2,747,949)  (2,785,949)
Net loans$708,896,566  $714,688,635 
 

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

 
 At September 30,  At December 31, 
 2024  2023 
 Amount  Percent  Average
Rate		  Amount  Percent  Average
Rate		 
                        
 (unaudited) 
Noninterest bearing demand accounts$32,125,742   5.11%  —% $30,554,842   4.89%  —%
NOW accounts 45,493,204   7.23%  2.21   41,320,723   6.61%  1.90 
Money market accounts 12,003,291   1.91%  0.30   14,641,846   2.34%  0.30 
Savings accounts 45,865,501   7.29%  1.82   45,554,964   7.28%  1.76 
Certificates of deposit 493,779,999   78.47%  4.15   493,274,767   78.88%  4.00 
Total$629,267,737   100.00%  3.55% $625,347,142   100.00%  3.42%
 

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 September 30, 
 2024  2023 
 Average
Balance		  Interest and Dividends  Yield/ Cost  Average
Balance		  Interest and Dividends  Yield/ Cost 
 (Dollars in thousands) 
Assets:(unaudited) 
Cash and cash equivalents$10,195  $138   5.39% $12,764  $168   5.21%
Loans 711,601   8,381   4.69%  710,725   7,981   4.45%
Securities 187,212   1,897   4.05%  138,479   1,008   2.91%
Other interest-earning assets 9,908   203   8.20%  6,620   132   8.04%
Total interest-earning assets 918,916   10,619   4.60%  868,588   9,289   4.25%
                        
Non-interest-earning assets 56,061           54,179         
Total assets$974,977          $922,767         
Liabilities and equity:                       
NOW and money market accounts$65,767  $329   1.99% $74,785  $354   1.88%
Savings accounts 44,029   205   1.85%  46,177   214   1.83%
Certificates of deposit (1) 497,251   5,626   4.50%  498,082   4,284   3.41%
Total interest-bearing deposits 607,047   6,160   4.04%  619,044   4,852   3.11%
                        
Federal Home Loan Bank advances (1) 196,885   1,802   3.64%  125,344   1,220   3.86%
Total interest-bearing liabilities 803,932   7,962   3.94%  744,388   6,072   3.24%
Non-interest-bearing deposits 31,679           38,257         
Other non-interest-bearing liabilities 2,724           1,727         
Total liabilities 838,335           784,372         
                        
Total equity 136,642           138,395         
Total liabilities and equity$974,977          $922,767         
Net interest income    $2,657          $3,217     
Interest rate spread (2)         0.66%          1.01%
Net interest margin (3)         1.15%          1.47%
Average interest-earning assets to average interest-bearing liabilities 114.30%          116.68%        
 
1. Cash flow and fair value hedges are used to manage interest rate risk. During the three months ended September 30, 2024 and 2023, the net effect on interest expense on the Federal Home Loan Bank advances and certificates of deposit was a reduced expense of $498,000 and $92,000, respectively.
2. Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.
3. Net interest margin represents net interest income divided by average total interest-earning assets.
 


 Nine Months Ended September 30, 
 2024  2023 
 Average Balance  Interest and Dividends  Yield/ Cost  Average Balance  Interest and Dividends  Yield/ Cost 
 (Dollars in thousands) 
Assets:                       
Cash and cash equivalents$9,072  $415   6.09% $11,352  $423   4.98%
Loans 711,697   24,888   4.66%  713,603   23,822   4.46%
Securities 179,818   5,287   3.92%  148,802   3,121   2.80%
Other interest-earning assets 8,903   566   8.48%  6,110   348   7.62%
Total interest-earning assets 909,490   31,156   4.57%  879,867   27,714   4.20%
Non-interest-earning assets 58,221           54,380         
Total assets$967,711          $934,247         
Liabilities and equity:                       
NOW and money market accounts$67,628  $993   1.96% $91,781  $1,089   1.59%
Savings accounts 43,824   608   1.85%  49,529   375   1.01%
Certificates of deposit (1) 510,494   16,784   4.39%  498,460   11,314   3.03%
Total interest-bearing deposits 621,946   18,385   3.95%  639,770   12,778   2.67%
Federal Home Loan Bank advances (1) 171,565   4,719   3.67%  110,875   2,900   3.50%
Total interest-bearing liabilities 793,511   23,104   3.89%  750,645   15,678   2.79%
Non-interest-bearing deposits 31,225           38,253         
Other non-interest-bearing liabilities 6,154           6,351         
Total liabilities 830,890           795,249         
Total equity 136,821           138,998         
Total liabilities and equity$967,711          $934,247         
Net interest income    $8,052          $12,036     
Interest rate spread (2)         0.68%          1.41%
Net interest margin (3)         1.18%          1.82%
Average interest-earning assets to average interest-bearing liabilities 114.62%          117.21%        
 
1. Cash flow and fair value hedges are used to manage interest rate risk. During the nine months ended September 30, 2024 and 2023, the net effect on interest expense on the Federal Home Loan Bank advances and certificates of deposit was a reduced expense of $1.2 million and $139,000, respectively.
2. Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.
3. Net interest margin represents net interest income divided by average total interest-earning assets.
 

Rate/Volume Analysis

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 September 30, 2024  Nine Months Ended September 30, 2024 
 Compared to  Compared to 
 Three Months Ended September 30, 2023  Nine Months Ended September 30, 2023 
 Increase (Decrease) Due to  Increase (Decrease) Due to 
 Volume  Rate  Net  Volume  Rate  Net 
 (In thousands) 
Interest income:(unaudited) 
Cash and cash equivalents$(66) $36  $(30) $(123) $115  $(8)
Loans receivable 9   391   400   (101)  1,167   1,066 
Securities 420   469   889   742   1,424   2,166 
Other interest earning assets 68   3   71   175   43   218 
Total interest-earning assets 432   898   1,330   692   2,750   3,442 
                        
Interest expense:                       
NOW and money market accounts (128)  103   (25)  (413)  317   (96)
Savings accounts (24)  15   (9)  (73)  306   233 
Certificates of deposit (49)  1,391   1,342   279   5,191   5,470 
Federal Home Loan Bank advances 1,031   (449)  582   1,667   152   1,819 
Total interest-bearing liabilities 830   1,060   1,890   1,461   5,965   7,426 
Net decrease in net interest income$(398) $(162) $(560) $(768) $(3,216) $(3,984)
 

Contacts
Kevin Pace – President & CEO, 201-862-0660 ext. 1110


FAQ

What was BSBK's net loss for Q3 2024?

Bogota Financial Corp. reported a net loss of $367,000, or $0.03 per share, for Q3 2024.

How much did BSBK's total assets increase in Q3 2024?

Total assets increased by $39.6 million, or 4.2%, to $978.9 million at September 30, 2024.

How many shares has BSBK repurchased under its current buyback program?

As of September 30, 2024, BSBK has repurchased 163,790 shares at a cost of $1.2 million under its current program.

What was the correction made to BSBK's Q3 2024 earnings release?

BSBK corrected an understatement of $300,000 in interest expense on deposits for Q3 2024, which affected various financial metrics including net loss and earnings per share.

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Bogota Financial Corp.

NASDAQ:BSBK

BSBK Rankings

#4390 Ranked by Market Cap
N/A Ranked by Dividends

BSBK Latest News

Nov 1, 2024
Bogota Financial Corp. Reports Results for the Three and Nine Months Ended September 30, 2024
Jul 31, 2024
Bogota Financial Corp. Reports Results for the Three and Six Months Ended June 30, 2024
Apr 30, 2024
Bogota Financial Corp. Reports Results for the Three Months Ended March 31, 2024
Apr 24, 2024
Bogota Financial Corp. Adopts and Receives Regulatory Approval of Fifth Repurchase Program
Feb 6, 2024
Bogota Financial Corp. Reports Results for the Three and Twelve Months Ended December 31, 2023

BSBK Stock Data

100.68M
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Banks - Regional
Savings Institutions, Not Federally Chartered
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United States of America
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