0001437749-26-010056
SEC filingBogota Financial Corp. reported net income of $2.1 million for FY 2025, a significant improvement from a net loss of $2.2 million in FY 2024. This turnaround was primarily driven by a $4.9 million increase in net interest income, which rose to $15.5 million from $10.6 million, due to higher yields on interest-earning assets and lower interest expense. Total assets decreased by 6.9% to $904.9 million, primarily due to a $64.1 million decrease in net loans and a $16.6 million decrease in cash and cash equivalents, partially offset by a $17.8 million increase in securities available for sale. The company maintained a strong capital position with total stockholders' equity of $140.9 million and a leverage ratio of 15.80%, classifying it as 'well capitalized.'
Bogota Financial Corp. reported a significant improvement in financial performance for FY 2025, with net income of $2.1 million compared to a net loss of $2.2 million in FY 2024. This $4.3 million positive swing was primarily driven by a $4.9 million increase in net interest income, which rose to $15.5 million from $10.6 million. The company's net interest margin improved 64 basis points to 1.80% from 1.16% in the prior year. Total assets decreased by $66.6 million (6.9%) to $904.9 million, primarily due to a $64.1 million decrease in net loans and a $16.6 million decrease in cash and cash equivalents. Total deposits increased by $10.3 million (1.6%) to $652.4 million, while Federal Home Loan Bank borrowings decreased by $78.9 million (45.8%) to $93.3 million.
The company's primary revenue source is net interest income, which increased by $4.9 million (46.6%) to $15.5 million. Interest income increased by $1.3 million (3.0%) to $43.0 million, driven by higher yields on securities (143 basis point increase to 5.31%) and loans (19 basis point increase to 4.88%), partially offset by lower average balances. Interest expense decreased by $3.7 million (11.7%) to $27.5 million, primarily due to lower average balances and costs on interest-bearing deposits. Non-interest income increased by $420,000 (31.1%) to $1.8 million, primarily due to a $564,000 increase in bank owned life insurance income. The company's loan portfolio decreased by $64.1 million (9.0%) to $647.6 million, with residential real estate loans comprising 68.3% of the total portfolio.
The company's net interest margin improved significantly to 1.80% from 1.16% in FY 2024, while the interest rate spread increased 63 basis points to 1.29%. The recovery of provision for credit losses was $130,000 in FY 2025 compared to $148,000 in FY 2024. Non-interest expenses increased by $707,000 (4.8%) to $15.3 million, with occupancy and equipment expenses increasing by $1.2 million (82.7%) due to higher lease expense from a sale-leaseback transaction. The company's overhead ratio (non-interest expense to average total assets) remained stable at 1.66%. The effective tax rate was (0.88%) for FY 2025 compared to (14.62%) for FY 2024.
Net cash provided by operating activities was $3.2 million for FY 2025. The company had net cash provided by investing activities of $50.1 million, primarily from maturities and repayments of securities and net decrease in loans. Net cash used in financing activities was $69.9 million, primarily due to repayments of long-term FHLB advances. Total stockholders' equity increased by $3.6 million to $140.9 million, with a ratio of average stockholders' equity-to-average total assets of 15.30%. The company maintained strong liquidity with $35.6 million in cash and cash equivalents and $158.1 million in securities available for sale. The allowance for credit losses was $2.5 million, representing 0.39% of total loans outstanding.
The company's business strategy focuses on continuing residential real estate lending (68.3% of portfolio), emphasizing commercial and multi-family real estate lending (27.8% of portfolio), increasing lower-cost core deposits (24.3% of total deposits), and maintaining disciplined underwriting. The company plans to open a new branch in Point Pleasant during Q2 2026 and will consider acquisition opportunities. Management expects competition to remain intense due to legislative, regulatory and technological changes. The company faces risks including interest rate risk, credit risk in commercial and multi-family real estate loans, construction loans, and cybersecurity threats. The company is classified as 'well capitalized' with a leverage ratio of 15.80% under the community bank leverage ratio framework.