Bogota Financial Corp. (NASDAQ: BSBK) (the “Company”), the
holding company for Bogota Savings Bank (the “Bank”), reported net
loss for the three months ended September 30, 2023 of $29,000, or
$0.00 per basic and diluted share, compared to net income of $1.9
million, or $0.14 per basic and diluted share, for the three months
ended September 30, 2022. The Company reported net income for the
nine months ended September 30, 2023 of $1.8 million, or $0.14 per
basic and diluted shares, compared to net income of $5.0 million,
or $0.36 per basic and diluted share, for the nine months ended
September 30, 2022.
On October 3, 2022, the Company announced it had received
regulatory approval for the repurchase of up to 556,631 shares of
its common stock, which was approximately 10% of its then
outstanding common stock (excluding shares held by Bogota
Financial, MHC). As of September 30, 2023, all shares under this
program have been repurchased, including the repurchase of 196,259
shares of stock during the nine months ended September 30, 2023 at
a cost of $2.1 million.
On May 24, 2023, the Company announced it had received
regulatory approval for the repurchase of up to 249,920 shares of
its common stock, which was approximately 5% of its then
outstanding common stock (excluding shares held by Bogota
Financial, MHC). As of September 30, 2023, 122,301 shares have been
repurchased under this program at a cost of $938,000.
Other Financial Highlights:
- Total assets decreased $24.1 million, or 2.5%, to $927.0
million at September 30, 2023 from $951.1 million at December 31,
2022, due to a decrease in loans and securities, offset by an
increase in cash and cash equivalents.
- Cash and cash equivalents increased $8.1 million, or 48.3%, to
$25.0 million at September 30, 2023 from $16.8 million at December
31, 2022.
- Securities decreased $28.1 million, or 17.3%, to $134.4 million
at September 30, 2023 from $162.5 million at December 31,
2022.
- Net loans decreased $8.7 million, or 1.2%, to $710.3 million at
September 30, 2023 from $719.0 million at December 31, 2022.
- Total deposits were $645.3 million, decreasing $56.1 million,
or 8.0%, as compared to $701.4 million at December 31, 2022,
primarily due to a $62.4 million decrease in non-interest-bearing
deposits, checking, savings and money market accounts, offset by a
$6.3 million increase in certificates of deposit. The average rate
paid on deposits at September 30, 2023 increased 126 basis points
to 3.08% at September 30, 2023 from 1.82% at December 31, 2022 due
to higher interest rates and a larger percentage of deposits
consisting of higher-costing certificates of deposit.
- Federal Home Loan Bank advances increased $33.0 million, or
32.2% to $135.3 million at September 30, 2023 from $102.3 million
as of December 31, 2022.
- Annualized return on average assets was 0.26% for the
nine-month period ended September 30, 2023 compared to 0.76% for
nine-month period ended September 30, 2022.
- Annualized return on average equity was 1.75% for the
nine-month period ended September 30, 2023 compared to 4.62% for
the nine-month period ended September 30, 2022.
- Upon adoption of the CECL method of calculating the allowance
for credit losses on January 1, 2023, the Bank recorded a one-time
decrease, net of tax, in retained earnings of $220,000, an increase
to the allowance for credit losses of $157,000 and an increase in
the reserve for unfunded liabilities of $152,000.
Joseph Coccaro, President and Chief Executive Officer, said,
“The impact of higher interest rates continues to impact our net
interest margin. Our net income and return on average assets for
the first nine months of 2023 are disappointing when compared to
prior periods due to the increase in deposit and borrowing costs
exceeding our growth in loan revenue. Currently, because of the
interest rate environment, loan opportunities, especially
residential and construction have significantly diminished.
However, we continue to examine opportunities to grow the balance
sheet based on loans that meet our risk tolerance and pricing
parameters.”
“The Bank continues to be prudent with its lending and interest
rate risk management. We remain well-capitalized with substantial
reserve sources of liquidity and are managing expenses. We are
currently working on a new branch in Upper Saddle River, NJ, which
will be the Bank’s seventh stand-alone branch. The Bank anticipates
this office will open in December 2023.”
Mr. Coccaro further stated, "We will continue to focus on
delivering excellent services to our customers. The Company
continues to repurchase shares of our common stock which will drive
shareholder value."
Income Statement Analysis
Comparison of Operating Results for the Three Months Ended
September 30, 2023 and September 30, 2022
Net income decreased by $2.0 million, or 101.5%, to a net loss
of $29,000 for the three months ended September 30, 2023 from net
income of $1.9 million for the three months ended September 30,
2022. This decrease was primarily due to a decrease of $3.0 million
in net interest income partially offset by a decrease of $175,000
in the provision for credit losses and a decrease of $859,000 in
income tax expense.
Interest income increased $1.1 million, or 13.6%, from $8.2
million for the three months ended September 30, 2022 to $9.3
million for the three months ended September 30, 2023 due to
increases in the average balances and higher yields on interest
earning assets.
Interest income on cash and cash equivalents increased $138,000,
or 460.0%, to $168,000 for the three months ended September 30,
2023 from $30,000 for the three months ended September 30, 2022 due
a 316 basis point increase in the average yield from 2.05% for the
three months ended September 30, 2022 to 5.21% for the three months
ended September 30, 2023 due to the higher interest rate
environment. The increase was also due to a $6.9 million increase
in the average balance to $12.8 million for the three months ended
September 30, 2023 from $5.9 million for the three months ended
September 30, 2022, reflecting the increase of liquidity due to
lower loan originations.
Interest income on loans increased $962,000, or 13.7%, to $8.0
million for the three months ended September 30, 2023 compared to
$7.0 million for the three months ended September 30, 2022 due
primarily to $40.6 million increase in the average balance to
$710.7 million for the three months ended September 30, 2023 from
$670.1 million for the three months ended September 30, 2022 and a
30 basis point increase in the average yield from 4.15% for the
three months ended September 30, 2022 to 4.45% for the three months
ended September 30, 2023. The increase was offset by a $348,000
reserve for nonaccrual interest on a delinquent construction
loan.
Interest income on securities decreased $53,000, or 5.0%, to
$1.0 million for the three months ended September 30, 2023 from
$1.1 million for the three months ended September 30, 2022
primarily due to a $44.1 million decrease in the average balance to
$138.5 million for the three months ended September 30, 2023 from
$182.6 million for the three months ended September 30, 2022 offset
by a 59 basis point increase in the average yield from 2.32% for
the three months ended September 30, 2022 to 2.91% for the three
months ended September 30, 2023.
Interest expense increased $4.1 million, or 208.7%, from $2.0
million for the three months ended September 30, 2022 to $6.1
million for the three months ended September 30, 2023 due to
increases in the average balance of and higher costs on
interest-bearing liabilities.
Interest expense on interest-bearing deposits increased $3.6
million, or 288.2%, to $4.9 million for the three months ended
September 30, 2023 from $1.3 million for the three months ended
September 30, 2022. The increase was due to a 229 basis point
increase in the average cost of deposits to 3.11% for the three
months ended September 30, 2023 from 0.82% for the three months
ended September 30, 2022. 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 $94.9 million to
$498.1 million for the three months ended September 30, 2023 from
$403.2 million for the three months ended September 30, 2022 while
NOW and money market accounts and savings accounts decreased $63.2
million and $14.7 million for the three months ended September 30,
2023, respectively, compared to the three months ended September
30, 2022.
Interest expense on Federal Home Loan Bank borrowings increased
$503,000, or 70.2%, from $717,000 for the three months ended
September 30, 2022 to $1.2 million for the three months ended
September 30, 2023. The increase was due to an increase in the
average cost of 156 basis points to 3.86% for the three months
ended September 30, 2023 from 2.30% for the three months ended
September 30, 2022 due to the new borrowings at higher rates. The
increase was partially offset by a decrease in the average balance
of borrowings of $3.2 million to $125.3 million for the three
months ended September 30, 2023 from $128.5 million for the three
months ended September 30, 2022.
Net interest income decreased $3.0 million, or 48.2%, to $3.2
million for the three months ended September 30, 2023 from $6.2
million for the three months ended September 30, 2022. The decrease
reflected a 167 basis point decrease in our net interest rate
spread to 1.01% for the three months ended September 30, 2023 from
2.68% for the three months ended September 30, 2022. Our net
interest margin decreased 138 basis points to 1.47% for the three
months ended September 30, 2023 from 2.85% for the three months
ended September 30, 2022.
We recorded no provision for credit losses for the three months
ended September 30, 2023 compared to a $175,000 provision for loan
losses for the three-month period ended September 30, 2022. The
Bank had a decrease in the loan portfolio and continues to have no
charge-offs.
Non-interest income increased by $20,000, or 7.5%, to $290,000
for the three months ended September 30, 2023 from $270,000 for the
three months ended September 30, 2022. Bank-owned life insurance
income increased $13,000, or 7.0%, due higher balances during 2023.
The increase was also due to an increase in fee and service charges
of $14,000 due to a higher collection of late charges.
For the three months ended September 30, 2023, non-interest
expense increased $23,000, or 0.6%, over the comparable 2022
period. Salaries and employee benefits increased $120,000, or 5.6%,
due to a higher employee count. Director fees decreased $30,000, or
15.9%, due to lower pension expense. FDIC insurance premiums
increased $79,000, or 145.5%, due to a higher assessment rate in
2023. The decrease in advertising expense of $30,000, or 19.3%, was
due to reduced promotions for branch locations and less promotions
on deposit and loan products. Data processing expense decreased
$105,000, or 33.9%, due to lower processing costs. Professional
fees decreased $14,000, or 8.7%, due to lower legal expense and
other expense decreased $21,000, or 8.1%, due to lower deferred
compensation expense and other various expenses.
Income tax expense decreased $859,000, or 117.1%, to a benefit
of $125,000 for the three months ended September 30, 2023 from a
$734,000 expense for the three months ended September 30, 2022. The
decrease was due to $2.8 million of lower taxable income.
Comparison of Operating Results for the Nine Months Ended
September 30, 2023 and September 30, 2022
Net income decreased by $3.2 million, or 63.4%, to $1.8 million
for the nine months ended September 30, 2023 from $5.0 million for
the nine months ended September 30, 2022. This decrease was
primarily due to a decrease of $5.0 million in net interest income,
offset by a decrease of $400,000 in the provision for credit losses
and a decrease of $1.5 million in income tax expense.
Interest income increased $6.3 million, or 29.7%, from $21.4
million for the nine months ended September 30, 2022 to $27.7
million for the nine months ended September 30, 2023 due to
increases in the average balances of and higher yields on
interest-earning assets.
Interest income on cash and cash equivalents increased $334,000,
or 375.3%, to $423,000 for the nine months ended September 30, 2023
from $89,000 for the nine months ended September 30, 2022 due a 462
basis point increase in the average yield from 0.36% for the nine
months ended September 30, 2022 to 4.98% for the nine months ended
September 30, 2023 due to the higher interest rate environment.
This was offset by a $21.1 million decrease in the average balance
to $11.4 million for the nine months ended September 30, 2023 from
$32.5 million for the nine months ended September 30, 2022,
reflecting the use of excess liquidity to fund loan originations
and purchase investment securities.
Interest income on loans increased $5.4 million, or 29.4%, to
$23.8 million for the nine months ended September 30, 2023 compared
to $18.4 million for the nine months ended September 30, 2022 due
primarily to a $101.4 million increase in the average balance to
$713.6 million for the nine months ended September 30, 2023 from
$612.3 million for the nine months ended September 30, 2022 and a
45 basis point increase in the average yield from 4.01% for the
nine months ended September 30, 2022 to 4.46% for the nine months
ended September 30, 2023. The increase was offset by a $1.0 million
reserve for nonaccrual interest on a delinquent construction
loan.
Interest income on securities increased $423,000, or 15.7%, to
$3.1 million for the nine months ended September 30, 2023 from $2.7
million for the nine months ended September 30, 2022 due primarily
to a 66 basis point increase in the average yield from 2.14% for
the nine months ended September 30, 2022 to 2.80% for the nine
months ended September 30, 2023. The increase was offset by a $19.3
million decrease in the average balance of securities to $148.8
million for the nine months ended September 30, 2023 from $168.1
million for the nine months ended September 30, 2022.
Interest expense increased $11.4 million, or 262.2%, from $4.3
million for the nine months ended September 30, 2022 to $15.7
million for the nine months ended September 30, 2023 due to
increases in the average balance of and higher costs on
interest-bearing liabilities.
Interest expense on interest-bearing deposits increased $9.9
million, or 336.7%, to $12.8 million for the nine months ended
September 30, 2023 from $2.9 million for the nine months ended
September 30, 2022. The increase was due to a 200 basis point
increase in the average cost of interest-bearing deposits to 2.67%
for the nine months ended September 30, 2023 from 0.67% for the
nine months ended September 30, 2022. 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 $128.7
million to $498.5 million for the nine months ended September 30,
2023 from $369.8 million for the nine months ended September 30,
2022 while NOW and money market accounts and savings accounts
decreased $54.9 million and $15.0 million for the nine months ended
September 30, 2023, respectively, compared to the nine months ended
September 30, 2022.
Interest expense on Federal Home Loan Bank borrowings increased
$1.5 million, or 106.7%, from $1.4 million for the nine months
ended September 30, 2022 to $2.9 million for the nine months ended
September 30, 2023. The increase was due to an increase in the
average cost of 158 basis points to 3.50% for the nine months ended
September 30, 2023 from 1.92% for the nine months ended September
30, 2022 due to the new borrowings at higher rates. The increase
was also due to an increase in the average balance of borrowings of
$13.3 million to $110.9 million for the nine months ended September
30, 2023 from $97.6 million for the nine months ended September 30,
2022.
Net interest income decreased $5.0 million, or 29.4%, to $12.0
million for the nine months ended September 30, 2023 from $17.0
million for the nine months ended September 30, 2022. The increase
reflected a 122 basis point decrease in our net interest rate
spread to 1.41% for the nine months ended September 30, 2023 from
2.63% for the nine months ended September 30, 2022. Our net
interest margin decreased 96 basis points to 1.82% for the nine
months ended September 30, 2023 from 2.78% for the nine months
ended September 30, 2022.
We recorded a $125,000 recovery of credit losses for the nine
months ended September 30, 2023 compared to a $275,000 provision
for loan losses for the nine-month period ended September 30, 2022.
The Bank had a decrease in the loan portfolio as well as no
charge-offs offset by increased delinquent and non-performing
loans. As of January 1, 2023 the Bank adopted CECL and recorded a
one-time adjustment of $157,000 to the allowance for credit
losses.
Non-interest income decreased by $12,000, or 1.3%, to $856,000
for the nine months ended September 30, 2023 from $868,000 for the
nine months ended September 30, 2022. Gain on sale of loans
decreased $58,000, or 66.2%, as loan originations were lower in
2023 due to the higher interest rate environment and the decision
to slow loan production to preserve capital and liquidity. Other
income decreased $40,000 or 29.8%. These decreases were partially
offset by an increase in income from bank-owned life insurance of
$64,000, or 12.4%, due to higher balances during 2023.
For the nine months ended September 30, 2023, non-interest
expense increased $37,000, or 0.3%, over the comparable 2022
period. Salaries and employee benefits increased $421,000, or 6.7%,
due to a higher employee count. Director fees decreased $130,000,
or 21.3%, due to lower pension expense. FDIC insurance premiums
increased $158,000, or 97.3%, due to a higher assessment rate in
2023. Data processing decreased $202,000, or 22.0%, due to the
timing of invoices. Other expense decreased $244,000, or 27.0%, due
to lower deferred compensation expense and other various
expenses.
Income taxes decreased $1.5 million, or 79.5%, to a benefit of
$386,000 for the nine months ended September 30, 2023 from an
expense of $1.9 million for the nine months ended September 30,
2022. The decrease was due to $4.7 million, or 67.8%, of lower
taxable income. The effective tax rate for the three and nine
months ended September 30, 2023 and 2022 was 17.49% and 27.46%,
respectively.
Balance Sheet Analysis
Total assets were $927.0 million at September 30, 2023,
representing a decrease of $24.1 million, or 2.5%, from December
31, 2022. Cash and cash equivalents increased $8.1 million during
the period primarily due to loan payments received and proceeds
from the call and maturity of securities. Net loans decreased $8.7
million, or 1.2%, due to $55.5 million in repayments, partially
offset by new production of $46.8 million. Due to the interest rate
environment, we have seen 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 decreased
$11.5 million, or 14.9%, and securities available for sale
decreased $16.6 million or 19.5%, due to the repayments of
mortgage-backed securities and maturities of corporate bonds.
Delinquent loans increased $18.0 million to $19.5 million, or
2.74% of total loans, at September 30, 2023. The increase was
mostly due to one commercial construction loan located in Totowa
New Jersey with a balance of $10.9 million with a loan to value
ratio of 46%. During the same timeframe, non-performing assets
increased to $12.3 million and were 1.33% of total assets at
September 30, 2023. The Company’s allowance for credit losses was
0.39% of total loans and 22.62% of non-performing loans at
September 30, 2023 compared to 0.36% of total loans and 136.3% of
non-performing loans at December 31, 2022. The Bank does not have
any exposure to commercial real estate loans secured by office
space.
Total liabilities decreased $22.1 million, or 2.7%, to $789.4
million mainly due to a $56.1 million decrease in deposits, offset
by a $33.0 million increase in borrowings. Total deposits decreased
$56.1 million, or 8.0%, to $645.3 million at September 30, 2023
from $701.4 million at December 31, 2022. The decrease in deposits
reflected decreases in NOW, money market and savings accounts,
which decreased by $56.2 million from $170.2 million at December
31, 2022 to $114.0 million at September 30, 2023, offset by an
increase in certificate of deposit accounts, which increased by
$6.3 million to $498.9 million from $492.6 million at December 31,
2022. At September 30, 2023, uninsured deposits represented 8.4% of
the Bank’s total deposits. Federal Home Loan Bank advances
increased $33.0 million, or 32.2%, to fund loan growth and deposit
outflows. Total borrowing capacity at the Federal Home Loan Bank is
$320.2 million of which $135.3 million is advanced.
Total stockholders’ equity decreased $2.0 million to $137.7
million, due to increased accumulated other comprehensive loss for
securities available for sale of $1.4 million and the repurchase of
318,560 shares of stock during the period at a cost of $3.0
million, offset by net income of $1.8 million for the nine months
ended September 30, 2023. At September 30, 2023, the Company’s
ratio of total stockholders’ equity adjusted for AOCI to total
assets adjusted for the allowance for credit losses was 15.67%,
compared to 17.08% at September 30, 2022.
About Bogota Financial Corp.
Bogota Financial Corp. is a Maryland corporation organized as
the mid-tier holding company of Bogota Savings Bank and is the
majority-owned subsidiary of Bogota Financial, MHC. Bogota Savings
Bank is a New Jersey chartered stock savings bank that has served
the banking needs of its customers in northern and central New
Jersey since 1893. It operates from six offices located in Bogota,
Hasbrouck Heights, Newark, Oak Ridge, Parsippany and Teaneck, New
Jersey and operates a loan production office in Spring Lake, New
Jersey.
Forward-Looking Statements
This press release contains certain forward-looking statements
about the Company and the Bank. Forward-looking statements include
statements regarding anticipated future events and can be
identified by the fact that they do not relate strictly to
historical or current facts. They often include words such as
“believe,” “expect,” “anticipate,” “estimate,” and “intend” or
future or conditional verbs such as “will,” “would,” “should,”
“could,” or “may.” Forward-looking statements, by their nature, are
subject to risks and uncertainties. Certain factors that could
cause actual results to differ materially from expected results
include increased competitive pressures, changes in the interest
rate environment, inflation, general economic conditions or
conditions within the securities markets, potential recessionary
conditions, real estate market values in the Bank’s lending area
changes in the quality of our loan and security portfolios,
increases in non-performing and classified loans, changes in
liquidity, including the size and composition of our deposit
portfolio, including the percentage of uninsured deposits in the
portfolio, 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, the current
or anticipated impact of military conflict, terrorism or other
geopolitical events, the impact of a potential government shutdown,
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, 2023
December 31, 2022
Assets
Cash and due from banks
$
7,213,903
$
8,160,028
Interest-bearing deposits in other
banks
17,763,418
8,680,889
Cash and cash equivalents
24,977,321
16,840,917
Securities available for sale, at fair
value
68,518,624
85,100,578
Securities held to maturity (fair value of
$57,033,705 and $70,699,651, respectively)
65,927,156
77,427,309
Loans, net of allowance of $2,785,949 and
$2,578,174, respectively
710,292,859
719,025,762
Premises and equipment, net
7,765,804
7,884,335
Federal Home Loan Bank (FHLB) stock and
other restricted securities
7,158,400
5,490,900
Accrued interest receivable
3,672,882
3,966,651
Core deposit intangibles
220,661
267,272
Bank-owned life insurance
30,780,398
30,206,325
Other assets
7,714,828
4,888,954
Total Assets
$
927,028,933
$
951,099,003
Liabilities and Equity
Non-interest bearing deposits
$
33,420,666
$
38,653,349
Interest bearing deposits
611,857,823
662,758,100
Total deposits
645,278,489
701,411,449
FHLB advances-short term
39,000,000
59,000,000
FHLB advances-long term
96,314,543
43,319,254
Advance payments by borrowers for taxes
and insurance
3,460,726
3,174,661
Other liabilities
5,321,920
4,534,516
Total liabilities
789,375,678
811,439,880
Stockholders’ Equity
Preferred stock $0.01 par value 1,000,000
shares authorized, none issued and outstanding at September 30,
2023 and December 31, 2022
—
—
Common stock $0.01 par value, 30,000,000
shares authorized, 13,373,766 issued and outstanding at September
30, 2023 and 13,699,016 at December 31, 2022
133,737
136,989
Additional paid-in capital
56,688,749
59,099,476
Retained earnings
93,354,828
91,756,673
Unearned ESOP shares (416,491 shares at
September 30, 2023 and 436,945 shares at December 31, 2022)
(4,897,099
)
(5,123,002
)
Accumulated other comprehensive loss
(7,626,960
)
(6,211,013
)
Total stockholders’ equity
137,653,255
139,659,123
Total liabilities and stockholders’
equity
$
927,028,933
$
951,099,003
BOGOTA FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF
INCOME
(unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2023
2022
2023
2022
Interest income
Loans, including fees
$
7,980,388
$
7,018,200
$
23,821,545
$
18,403,802
Securities
Taxable
994,791
1,013,034
3,042,389
2,582,869
Tax-exempt
13,159
48,027
78,293
115,305
Other interest-earning assets
301,081
96,139
771,584
263,634
Total interest income
9,289,419
8,175,400
27,713,811
21,365,610
Interest expense
Deposits
4,851,926
1,249,693
12,777,907
2,925,685
FHLB advances
1,220,166
716,705
2,900,359
1,402,741
Total interest expense
6,072,092
1,966,398
15,678,266
4,328,426
Net interest income
3,217,327
6,209,002
12,035,545
17,037,184
Provision (recovery) for credit losses
—
175,000
(125,000
)
275,000
Net interest income after (recovery)
provision for credit losses
3,217,327
6,034,002
12,160,545
16,762,184
Non-interest income
Fees and service charges
61,529
47,090
159,381
136,886
Gain on sale of loans
—
—
29,375
86,913
Bank-owned life insurance
197,873
185,085
574,073
510,527
Other
30,332
37,336
93,660
133,325
Total non-interest income
289,734
269,511
856,489
867,651
Non-interest expense
Salaries and employee benefits
2,274,347
2,154,654
6,737,952
6,316,898
Occupancy and equipment
372,626
347,036
1,114,170
1,033,846
FDIC insurance assessment
132,571
54,000
319,690
162,000
Data processing
205,721
311,106
717,913
920,293
Advertising
126,000
156,145
369,383
368,435
Director fees
159,336
189,424
478,011
607,749
Professional fees
149,251
163,500
412,519
459,253
Other
241,530
262,890
661,300
905,428
Total non-interest expense
3,661,382
3,638,755
10,810,938
10,773,902
Income (loss) before income taxes
(154,321
)
2,664,758
2,206,096
6,855,933
Income tax (benefit) expense
(125,268
)
734,152
385,801
1,882,423
Net (loss) income
$
(29,053
)
$
1,930,606
$
1,820,295
$
4,973,510
Earnings per Share - basic
$
(0.00
)
$
0.14
$
0.14
$
0.36
Earnings per Share - diluted
$
(0.00
)
$
0.14
$
0.14
$
0.36
Weighted average shares outstanding -
basic
13,037,903
13,468,751
13,103,951
13,661,851
Weighted average shares outstanding -
diluted
13,037,903
13,529,857
13,103,951
13,704,688
BOGOTA FINANCIAL CORP.
SELECTED RATIOS
(unaudited)
At or For the Three
Months
At or for the Nine
Months
Ended September 30,
Ended September 30,
2023
2022
2023
2022
Performance Ratios (1):
Return (loss) on average assets (2)
(0.01
)%
0.95
%
0.26
%
0.76
%
Return (loss) on average equity (3)
(0.08
)%
5.56
%
1.75
%
4.62
%
Interest rate spread (4)
1.01
%
2.68
%
1.41
%
2.63
%
Net interest margin (5)
1.47
%
2.85
%
1.82
%
2.78
%
Efficiency ratio (6)
104.40
%
56.17
%
83.05
%
60.17
%
Average interest-earning assets to average
interest-bearing liabilities
116.68
%
118.42
%
117.21
%
120.59
%
Net loans to deposits
110.08
%
105.83
%
110.08
%
105.83
%
Average equity to assets (7)
15.00
%
14.91
%
14.88
%
16.52
%
Capital Ratios:
Tier 1 capital to average assets
15.67
%
17.08
%
Asset Quality Ratios:
Allowance for credit losses as a percent
of total loans
0.39
%
0.36
%
Allowance for credit losses as a percent
of non-performing loans
22.62
%
128.84
%
Net charge-offs to average outstanding
loans during the period
0.00
%
0.00
%
Non-performing loans as a percent of total
loans
1.73
%
0.27
%
Non-performing assets as a percent of
total assets
1.33
%
0.20
%
(1)
Performance ratios are annualized.
(2)
Represents net income divided by average
total assets.
(3)
Represents net income divided by average
stockholders' equity.
(4)
Represents the difference between the
weighted average yield on average interest-earning assets and the
weighted average cost of average interest-bearing liabilities. Tax
exempt income yield is reported on a tax equivalent basis using a
combined federal and state marginal tax rate of 27.5%.
(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%.
(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, 2023 and
December 31, 2022:
September 30,
December 31,
2023
2022
(unaudited)
Real estate:
Residential First Mortgage
$
459,635,136
$
466,100,627
Commercial and Multi-Family Real
Estate
167,767,921
162,338,669
Construction
51,537,604
61,825,478
Commercial and Industrial
5,697,696
1,684,189
Consumer:
Home Equity and Other Consumer
28,440,451
29,654,973
Total loans
713,078,808
721,603,936
Allowance for credit losses
(2,785,949
)
(2,578,174
)
Net loans
$
710,292,859
$
719,025,762
The following tables set forth the distribution of total deposit
accounts, by account type, at the dates indicated.
At September 30,
At December 31,
2023
2022
Amount
Percent
Average Rate
Amount
Percent
Average Rate
(unaudited)
Noninterest bearing demand accounts
$
32,353,920
5.01
%
—
%
$
38,653,472
5.52
%
—
%
NOW accounts
49,142,170
7.62
2.11
82,720,214
11.79
0.88
Money market accounts
17,627,118
2.73
0.31
30,037,106
4.28
0.32
Savings accounts
47,237,005
7.32
1.77
57,407,955
8.18
0.49
Certificates of deposit
498,918,276
77.32
3.60
492,592,702
70.23
2.37
Total
$
645,278,489
100.00
%
3.08
%
$
701,411,449
100.00
%
1.82
%
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,
2023
2022
Average Balance
Interest and Dividends
Yield/ Cost
Average Balance
Interest and Dividends
Yield/ Cost
(Dollars in thousands)
Assets:
(unaudited)
Cash and cash equivalents
$
12,764
$
168
5.21
%
$
5,912
$
31
2.05
%
Loans
710,725
7,981
4.45
%
670,145
7,019
4.15
%
Securities
138,479
1,008
2.91
%
182,626
1,061
2.32
%
Other interest-earning assets
6,620
132
8.04
%
6,629
65
3.99
%
Total interest-earning assets
868,588
9,289
4.25
%
865,312
8,176
3.75
%
Non-interest-earning assets
54,179
51,273
Total assets
$
922,767
$
916,585
Liabilities and equity:
NOW and money market accounts
$
74,785
$
354
1.88
%
$
138,015
$
173
0.50
%
Savings accounts
46,177
214
1.83
%
60,912
40
0.26
%
Certificates of deposit
498,082
4,284
3.41
%
403,223
1,037
1.02
%
Total interest-bearing deposits
619,044
4,852
3.11
%
602,150
1,250
0.82
%
Federal Home Loan Bank advances (1)
125,344
1,220
3.86
%
128,534
717
2.30
%
Total interest-bearing liabilities
744,388
6,072
3.24
%
730,684
1,967
1.08
%
Non-interest-bearing deposits
38,257
40,028
Other non-interest-bearing liabilities
1,727
4,232
Total liabilities
784,372
774,944
Total equity
138,395
141,641
Total liabilities and equity
$
922,767
$
916,585
Net interest income
$
3,217
$
6,209
Interest rate spread (2)
1.01
%
2.68
%
Net interest margin (3)
1.47
%
2.85
%
Average interest-earning assets to average
interest-bearing liabilities
116.68
%
118.42
%
1.
Cash flow hedges are used to manage
interest rate risk. During the three months ended September 30,
2023, the net effect on interest expense on the Federal Home Loan
Bank advances was a reduced expense of $92,000.
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,
2023
2022
Average Balance
Interest and Dividends
Yield/ Cost
Average Balance
Interest and Dividends
Yield/ Cost
(Dollars in thousands)
Assets:
Cash and cash equivalents
$
11,352
$
423
4.98
%
$
32,485
$
88
0.36
%
Loans
713,603
23,822
4.46
%
612,252
18,404
4.01
%
Securities
148,802
3,121
2.80
%
168,081
2,698
2.14
%
Other interest-earning assets
6,110
348
7.62
%
5,458
175
4.30
%
Total interest-earning assets
879,867
27,714
4.20
%
818,276
21,365
3.49
%
Non-interest-earning assets
54,380
52,040
Total assets
$
934,247
$
870,316
Liabilities and equity:
NOW and money market accounts
$
91,781
$
1,089
1.59
%
$
146,653
$
610
0.56
%
Savings accounts
49,529
375
1.01
%
64,509
126
0.26
%
Certificates of deposit
498,460
11,314
3.03
%
369,808
2,189
0.79
%
Total interest-bearing deposits
639,770
12,778
2.67
%
580,970
2,925
0.67
%
Federal Home Loan Bank advances (1)
110,875
2,900
3.50
%
97,571
1,403
1.92
%
Total interest-bearing liabilities
750,645
15,678
2.79
%
678,541
4,328
0.85
%
Non-interest-bearing deposits
38,253
44,256
Other non-interest-bearing liabilities
6,351
3,705
Total liabilities
795,249
726,502
Total equity
138,998
143,814
Total liabilities and equity
$
934,247
$
870,316
Net interest income
$
12,036
$
17,037
Interest rate spread (2)
1.41
%
2.63
%
Net interest margin (3)
1.82
%
2.78
%
Average interest-earning assets to average
interest-bearing liabilities
117.21
%
120.59
%
1.
Cash flow hedges are used to manage
interest rate risk. During the nine months ended September 30,
2023, the net effect on interest expense on the Federal Home Loan
Bank advances was a reduced expense of $139,000.
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, 2023
Nine Months Ended September
30, 2023
Compared to
Compared to
Three Months Ended September
30, 2022
Nine Months Ended September
30, 2022
Increase (Decrease) Due
to
Increase (Decrease) Due
to
Volume
Rate
Net
Volume
Rate
Net
(In thousands)
Interest income:
(unaudited)
Cash and cash equivalents
$
59
$
79
$
138
$
(129
)
$
463
$
334
Loans receivable
439
523
962
3,229
2,189
5,418
Securities
(1,076
)
1,023
(53
)
(487
)
910
423
Other interest earning assets
(1
)
68
67
23
150
173
Total interest-earning assets
(579
)
1,693
1,114
2,636
3,712
6,348
Interest expense:
NOW and money market accounts
(517
)
698
181
(430
)
909
479
Savings accounts
(67
)
241
174
(54
)
303
249
Certificates of deposit
296
2,951
3,247
997
8,128
9,125
Federal Home Loan Bank advances
(124
)
627
503
213
1,284
1,497
Total interest-bearing liabilities
(412
)
4,517
4,105
726
10,624
11,350
Net increase (decrease) in net interest
income
$
(167
)
$
(2,824
)
$
(2,991
)
$
1,910
$
(6,912
)
$
(5,002
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231101271237/en/
Joseph Coccaro – President & CEO, 201-862-0660 ext. 1110
Bogota Financial (NASDAQ:BSBK)
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Bogota Financial (NASDAQ:BSBK)
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