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CORRECTION - Bogota Financial Corp. Reports Results for the Three and Nine Months Ended September 30, 2024 Corrected
ソース: Nasdaq GlobeNewswire / 01 11 2024 21:00:00 America/New_York
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 deposit Average rate
for depositsAs Initially Reported 4.15% 3.55% As Corrected 4.39% 3.95% For Three Months Ended September 30, 2024
(Dollars in thousands, except per share data) Interest paid on average certificates of deposit Interest paid on average interest-bearing deposits Net interest income Net interest income after provision (recovery) for credit losses (Loss) income before income taxes Income tax (benefit) expense Net (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 deposit Cost of average interest-bearing deposits (Loss) Return on Average Assets (Loss) Return on Average Equity Interest rate spread Net interest margin Efficiency Ratio As Initially Reported 4.26 % 3.84 % (0.09 )% (0.72 )% 0.81 % 1.24 % 109.75 % As Corrected 4.50 % 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 deposit Interest paid on average interest-bearing deposits Net interest income Net interest income after provision (recovery) for credit losses (Loss) income before income taxes Income tax (benefit) expense Net (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 deposit Cost of average interest-bearing deposits (Loss) Return on Average Assets (Loss) Return on Average Equity Interest rate spread Net interest margin Efficiency Ratio As Initially Reported 4.31 % 3.88 % (0.17 )% (1.23 )% 0.73 % 1.23 % 118.23 % As Corrected 4.39 % 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
RateAmount 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
BalanceInterest and Dividends Yield/ Cost Average
BalanceInterest 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
