BSBK · Bogota Financial Corp.

Bogota Financial Corp. reported net income of $706,000 for the first quarter of 2026, a decrease of $25,000 from $731,000 in the same period last year. The decline was primarily driven by a $568,000 decrease in non-interest income, which included a death benefit in the prior year, and a $240,000 increase in income tax expense. These were partially offset by a $703,000 increase in net interest income, a $130,000 increase in provision for credit losses, and an $80,000 decrease in non-interest expense.

Net interest income rose 23.2% to $4.4 million, reflecting a 48-basis-point expansion in net interest rate spread to 1.60% and a 54-basis-point increase in net interest margin to 2.20%. The improvement was driven by lower deposit costs and a shift in the funding mix, with average cost of deposits declining 45 basis points to 3.38%. Interest income on securities increased 23.5% due to higher yields and balances, while interest expense on deposits and FHLB advances decreased.

Management highlighted core operating earnings improvement and strong capital levels. President and CEO Kevin Pace noted, 'Core operating earnings for the first quarter improved year over year with a 23% increase in net interest income that supported growth in our income before taxes.' The balance sheet remains robust with a 16.28% equity-to-assets ratio.

Credit quality remained stable, with the allowance for credit losses at 0.40% of total loans and no charge-offs during the quarter. Non-performing assets increased slightly to $13.5 million, or 1.54% of total assets. The company continues its stock repurchase program, having bought back 14,313 shares at a cost of $119,000.