Bogota Financial Corp. Reports Results for the Three Months Ended March 31, 2025

TEANECK, N.J., April 30, 2025 (GLOBE NEWSWIRE) -- Bogota Financial Corp. (NASDAQ: BSBK) (the “Company”), the holding company for Bogota Savings Bank (the “Bank”), reported net income for the three months ended March 31, 2025 of $731,000, or $0.06 per basic and diluted share, compared to a net loss of $441,000, or $0.03 per basic and diluted share, for the comparable prior year period. The increase in net income was primarily due to a decrease in deposit costs and increases in the yield on loans and security income, which resulted in a $942,000 increase in net interest income over the previous year. The Company also recorded a one-time death benefit accrual from its bank-owned life insurance policy for a former employee of approximately $543,000. The Bank has completed its previous repurchase program and has no repurchase program outstanding. As of March 31, 2025, 238,258 shares had been repurchased pursuant to the previous program at a cost of $1.7 million. Other Financial Highlights: Total assets decreased $41.3 million, or 4.3%, to $930.2 million at March 31, 2025 from $971.5 million at December 31, 2024, due to a decrease in cash and cash equivalents, loans and securities.Cash and cash equivalents decreased $26.6 million, or 51.0%, to $25.6 million at March 31, 2025 from $52.2 million at December 31, 2024 as excess funds were used to pay down borrowings.Securities decreased $2.6 million, or 1.8%, to $137.7 million at March 31, 2025 from $140.3 million at December 31, 2024.Net loans decreased $10.2 million, or 1.4%, to $701.5 million at March 31, 2025 from $711.7 million at December 31, 2024.Total deposits at March 31, 2025 were $633.0 million, decreasing $9.2 million, or 1.4%, as compared to $642.2 million at December 31, 2024, due to a $9.5 million decrease in interest-bearing deposits, primarily due to a $17.3 million decrease in certificates of deposit, and a $1.2 million decrease in money market accounts, offset by a $6.6 million increase in NOW accounts and a $2.4 million increase in savings accounts. The average cost of deposits increased 13 basis points to 3.55% for the first quarter of 2025 from 3.42% for the three months ended December 31, 2024.Federal Home Loan Bank advances decreased $32.4 million, or 18.8% to $139.8 million at March 31, 2025 from $172.2 million as of December 31, 2024. Kevin Pace, President and Chief Executive Officer, said “We continue to have a positive outlook on achieving the long-term goals we have set. We have also experienced immediate improvements from the balance sheet restructuring completed at the end of 2024. With a full quarter completed, the positive impact of the restructuring is reflected on our financials. The current market turmoil has created uncertainty around rates. We remain very mindful of this as we project our growth and look to improve our net interest margin.” “Credit quality remains a focus, as it has historically, while we anticipate modest loan growth in the short term. Growth and diversification of our assets are a priority of our strategic plan and we remain dedicated to that vision." Income Statement Analysis Comparison of Operating Results for the Three Months Ended March 31, 2025 and March 31, 2024 Net income increased by $1.2 million to net income of $731,000 for the three months ended March 31, 2025 compared to a net loss of $441,000 for the three months ended March 31, 2024. This increase was primarily due to an increase of $942,000 in net interest income, and a $590,000 increase in non-interest income, partially offset by an increase of $300,000 in occupancy and equipment costs, and a decrease of $259,000 in income tax benefit. Interest income increased $862,000, or 8.6%, from $10.1 million for the three months ended March 31, 2024 to $10.9 million for the three months ended March 31, 2025 primarily due to higher yields on interest-earning assets, offset by a decrease in interest-earning assets. Interest income on cash and cash equivalents increased $115,000, or 76.7%, to $265,000 for the three months ended March 31, 2025 from $150,000 for the three months ended March 31, 2024 due to a $6.7 million increase in the average balance to $16.6 million for the three months ended March 31, 2025 from $9.9 million for the three months ended March 31, 2024, reflecting the decrease in loans and securities. The increase was augmented by a 27 basis point increase in the average yield from 6.10% for the three months ended March 31, 2024 to 6.37% for the three months ended March 31, 2025 due to the higher interest rate environment. Interest income on loans increased $396,000, or 4.8%, to $8.6 million for the three months ended March 31, 2025 compared to $8.2 million for the three months ended March 31, 2024 due primarily to a 27 basis point increase in the average yield from 4.61% for the three months ended March 31, 2024 to 4.88% for the three months ended March 31, 2025, which was offset by a $8.3 million decrease in the average balance to $705.1 million for the three months ended March 31, 2025 from $713.4 million for the three months ended March 31, 2024. Interest income on securities increased $304,000, or 19.9%, to $1.8 million for the three months ended March 31, 2025 from $1.5 million for the three months ended March 31, 2024 primarily due to a 138 basis point increase in the average yield from 3.67% for the three months ended March 31, 2024 to 5.05% for the three months ended March 31, 2025 due to the rebalancing of the balance sheet in the fourth quarter of 2024. This was partially offset by a $21.4 million decrease in the average balance to $145.3 million for the three months ended March 31, 2025 from $166.7 million for the three months ended March 31, 2024. Interest expense decreased $80,000, or 1.1%, from $7.4 million for the three months ended March 31, 2024 to $7.3 million for the three months ended March 31, 2025 due to lower average balances on certificates of deposits, offset by an increase in the cost of funds. During the three months ended March 31, 2025, the use of hedges reduced the interest expense on the Federal Home Loan Bank and brokered deposit advances by $177,000. At March 31, 2025, 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. Interest expense on interest-bearing deposits decreased $208,000, or 3.5%, to $5.8 million for the three months ended March 31, 2025 from $6.0 million for the three months ended March 31, 2024. The average balances of certificates of deposit decreased $32.2 million to $484.3 million for the three months ended March 31, 2025 from $516.5 million for the three months ended March 31, 2024 while the average balance of NOW/money market accounts and savings accounts increased $10.0 million and $2.5 million for the three months ended March 31, 2025, respectively, compared to the three months ended March 31, 2024. Interest expense on Federal Home Loan Bank advances increased $128,000, or 8.9%, from $1.4 million for the three months ended March 31, 2024 to $1.6 million for the three months ended March 31, 2025. The increase was primarily due to an increase in the average cost of borrowings of 24 basis points to 4.02% for the three months ended March 31, 2025 from 3.78% for the three months ended March 31, 2024 due to new borrowings being at shorter durations. The increase was also due to an increase in the average balance of $4.8 million to $158.1 million for the three months ended March 31, 2025 from $153.3 million for the three months ended March 31, 2024. Net interest income increased $942,000, or 35.5%, to $3.6 million for the three months ended March 31, 2025 from $2.7 million for the three months ended March 31, 2024. The increase reflected a 44 basis point increase in our net interest rate spread to 1.12% for the three months ended March 31, 2025 from 0.68% for the three months ended March 31, 2024. Our net interest margin increased 48 basis points to 1.66% for the three months ended March 31, 2025 from 1.18% for the three months ended March 31, 2024. We recorded a recovery for credit losses for the three months ended March 31, 2025 of $80,000 compared to a provision for credit losses of $35,000 for the three months ended March 31, 2024 due to decreases in loan balances and unfunded commitments. Non-interest income increased by $590,000, or 197.4%, to $889,000 for the three months ended March 31, 2025 from $299,000 for the three months ended March 31, 2024. Bank-owned life insurance income increased $550,000, or 259.5%, due to a death benefit received related to a former employee. Gain on sale of loans increased $29,000 compared to no gain on sale of loans for the comparable period last year. For the three months ended March 31, 2025, non-interest expense increased $217,000, or 5.9%, over the comparable 2024 period. This was due to a $300,000, or 80.9% increase in occupancy and equipment costs, which increased as we began leasing certain offices as part of the sale-leaseback transaction completed in the fourth quarter of 2024, which was offset by a $78,000, or 3.6%, decrease in salaries and employee benefit costs, which decreased as a result of reduced headcount, taxes and a reduction in stock-based compensation expense. Income tax benefit decreased $259,000, to a benefit of $28,000 for the three months ended March 31, 2025 from a $287,000 benefit for the three months ended March 31, 2024. The decrease was due to an increase of $1.4 million in taxable income, offset by the benefits of income from bank-owned life insurance, which is tax free. Balance Sheet Analysis Total assets were $930.2 million at March 31, 2025, representing a decrease of $41.3 million, or 4.3%, from December 31, 2024. Cash and cash equivalents decreased $26.6 million during the period primarily due to the paydown of borrowings and decrease in deposits. Net loans decreased $10.2 million, or 1.44%, due to a $6.6 million decrease in the balance of residential loans, as well as a $9.7 million decrease in the balance of construction loans and a decrease of $1.1 million in commercial and industrial loans. The decrease was partially offset by new production of $7.8 million of commercial real estate loans. 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 available for sale decreased $2.6 million, or 1.8%. Delinquent loans decreased $842,000 to $13.5 million, or 1.92% of total loans, at March 31, 2025, compared to $14.3 million, or 2.01% of total loans, at December 31, 2024. The decrease was mostly due to the payoff of one commercial real estate loan with a balance of $455,000 and residential loans totaling $387,000 being brought current. During the same timeframe, non-performing assets decreased from $14.0 million at December 31, 2024 to $13.9 million, which represented 1.49% of total assets at March 31, 2025. No loans were charged-off during the three months ended March 31, 2025 or March 31, 2024. The Company’s allowance for credit losses related to loans was 0.37% of total loans and 18.65% of non-performing loans at March 31, 2025 compared to 0.37% of total loans and 21.81% of non-performing loans at December 31, 2024. The Bank does not have any exposure to commercial real estate loans secured by office space. Total liabilities decreased $42.3 million, or 5.1%, to $791.9 million mainly due to a $32.4 million decrease in borrowings and a $9.2 million decrease in total deposits. The decrease in deposits reflected a decrease in certificate of deposit accounts, which decreased by $17.3 million to $476.0 million from $493.3 million at December 31, 2024, and a $1.2 million, or 8.3%, decrease in money market accounts. This was offset by an increase in NOW deposit accounts, which increased by $6.6 million to $62.0 million from $55.4 million at December 31, 2024, and by an increase in savings accounts, which increased by $2.4 million from $46.9 million at December 31, 2024 to $49.3 million at March 31, 2025. At March 31, 2025, brokered deposits were $94.2 million or 14.9% of deposits and municipal deposits were $39.2 million or 6.2% of deposits. At March 31, 2025, uninsured deposits represented 7.9% of the Bank’s total deposits. Federal Home Loan Bank advances decreased $32.4 million, or 18.8%, due to paydown of existing borrowings. Total borrowing capacity at the Federal Home Loan Bank is $261.9 million of which $139.8 million has been advanced. Total stockholders’ equity increased $965,000 to $138.3 million, due to net income of $731,000 and a decrease in accumulated other comprehensive loss of $360,000. At March 31, 2025, the Company’s ratio of average stockholders’ equity-to-average total assets was 14.59%, compared to 13.99% at December 31, 2024. 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 including potential recessionary conditions, the imposition of tariffs or other domestic or international governmental policies, 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 for calculating 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 March 31, 2025 December 31, 2024 Assets Cash and due from banks $8,304,517 $18,020,527 Interest-bearing deposits in other banks 17,305,310 34,211,681 Cash and cash equivalents 25,609,827 52,232,208 Securities available for sale, at fair value 137,732,521 140,307,447 Loans, net of allowance for credit losses of $2,590,950 and $2,620,949, respectively 701,484,425 711,716,236 Premises and equipment, net 4,662,435 4,727,302 Federal Home Loan Bank (FHLB) stock and other restricted securities 7,343,700 8,803,000 Accrued interest receivable 4,151,280 4,232,563 Core deposit intangibles 140,827 152,893 Bank-owned life insurance 31,112,915 31,859,604 Right of use asset 10,624,725 10,776,596 Other assets 7,329,182 6,682,035 Total Assets $930,191,837 $971,489,884 Liabilities and Equity Non-interest bearing deposits $32,983,669 $32,681,963 Interest bearing deposits 600,051,531 609,506,079 Total deposits 633,035,200 642,188,042 FHLB advances-short term 24,500,000 29,500,000 FHLB advances-long term 115,273,377 142,673,182 Advance payments by borrowers for taxes and insurance 2,707,508 2,809,205 Lease liabilities 10,667,946 10,780,363 Other liabilities 5,754,000 6,249,932 Total liabilities 791,938,031 834,200,724 Stockholders’ Equity Preferred stock $0.01 par value 1,000,000 shares authorized, none issued and outstanding at March 31, 2025 and December 31, 2024 — — Common stock $0.01 par value, 30,000,000 shares authorized, 13,008,964 issued and outstanding at March 31, 2025 and 13,059,175 at December 31, 2024 130,089 130,592 Additional paid-in capital 55,068,598 55,269,962 Retained earnings 90,737,595 90,006,648 Unearned ESOP shares (376,338 shares at March 31, 2025 and 382,933 shares at December 31, 2024) (4,445,293) (4,520,594)Accumulated other comprehensive loss (3,237,183) (3,597,448)Total stockholders’ equity 138,253,806 137,289,160 Total liabilities and stockholders’ equity $930,191,837 $971,489,884 BOGOTA FINANCIAL CORP. CONSOLIDATED STATEMENTS OF OPERATIONS(unaudited) Three Months Ended March 31, 2025 2024 Interest income Loans, including fees $8,603,129 $8,207,392 Securities Taxable 1,830,394 1,516,343 Tax-exempt 2,895 13,148 Other interest-earning assets 487,171 324,304 Total interest income 10,923,589 10,061,187 Interest expense Deposits 5,762,324 5,969,881 FHLB advances 1,568,027 1,440,069 Total interest expense 7,330,351 7,409,950 Net interest income 3,593,238 2,651,237 (Recovery) provision for credit losses (80,000) 35,000 Net interest income after (recovery) provision for credit losses 3,673,238 2,616,237 Non-interest income Fees and service charges 55,819 58,587 Gain on sale of loans 29,062 — Bank-owned life insurance 762,231 211,959 Other 42,260 28,532 Total non-interest income 889,372 299,078 Non-interest expense Salaries and employee benefits 2,080,199 2,158,565 Occupancy and equipment 671,469 371,117 FDIC insurance assessment 106,586 100,597 Data processing 315,697 303,605 Advertising 105,500 110,100 Director fees 159,444 155,700 Professional fees 198,730 196,785 Other 222,045 246,622 Total non-interest expense 3,859,670 3,643,091 Income (loss) before income taxes 702,940 (727,776)Income tax benefit (28,007) (286,796)Net income (loss) $730,947 $(440,980)Earnings (loss) per Share - basic $0.06 $(0.03)Earnings (loss) per Share - diluted $0.06 $(0.03)Weighted average shares outstanding - basic 12,649,573 12,852,930 Weighted average shares outstanding - diluted 12,650,520 12,852,930 BOGOTA FINANCIAL CORP. SELECTED RATIOS (unaudited) At or For the Three Months Ended March 31, 2025 2024 Performance Ratios (1): Return (loss) on average assets (2) 0.08% (0.19)%Return (loss) on average equity (3) 0.53% (1.29)%Interest rate spread (4) 1.12% 0.68%Net interest margin (5) 1.66% 1.18%Efficiency ratio (6) 86.10% 137.41%Average interest-earning assets to average interest-bearing liabilities 114.03% 114.57%Net loans to deposits 110.81% 106.42%Average equity to average assets (7) 14.59% 14.36%Capital Ratios: Tier 1 capital to average assets 15.00% 13.23%Asset Quality Ratios: Allowance for credit losses as a percent of total loans 0.37% 0.40%Allowance for credit losses as a percent of non-performing loans 18.65% 22.69%Net charge-offs to average outstanding loans during the period --% --%Non-performing loans as a percent of total loans 1.97% 1.75%Non-performing assets as a percent of total assets 1.49% 1.30% (1) Certain performance ratios for the three months ended March 31, 2025 and 2024 are annualized.(2) Represents net income (loss) divided by average total assets.(3) Represents net income (loss) 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 2025 and 2024.(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 2025 and 2024.(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 March 31, 2025 and December 31, 2024: March 31, December 31, 2025 2024 (unaudited) Real estate: Residential First Mortgage $466,177,175 $472,747,542 Commercial Real Estate 125,783,750 118,008,866 Multi-Family Real Estate 73,465,142 74,152,418 Construction 33,501,463 43,183,657 Commercial and Industrial 5,070,847 6,163,747 Consumer 76,998 80,955 Total loans 704,075,375 714,337,185 Allowance for credit losses (2,590,950) (2,620,949)Net loans $701,484,425 $711,716,236 The following tables set forth the distribution of total deposit accounts, by account type, at the dates indicated: At March 31, At December 31, 2025 2024 Amount Percent Average Rate Amount Percent Average Rate (unaudited) Noninterest bearing demand accounts $32,983,669 5.21% —% $32,681,963 5.09% —%NOW accounts 61,950,627 9.79% 2.61 55,378,051 8.62% 2.53 Money market accounts 12,835,160 2.03% 0.50 13,996,460 2.18% 0.58 Savings accounts 49,281,181 7.78% 1.96 46,851,793 7.30% 1.90 Certificates of deposit 475,984,563 75.19% 4.17 493,279,775 76.81% 4.37 Total $633,035,200 100.00% 3.55% $642,188,042 100.00% 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 March 31, 2025 2024 AverageBalance Interest and Dividends Yield/ Cost (1) Average Balance Interest and Dividends Yield/ Cost (1) (Dollars in thousands) Assets: (unaudited) Cash and cash equivalents $16,601 $265 6.37% $9,865 $150 6.10%Loans 705,095 8,603 4.88% 713,430 8,207 4.61%Securities 145,280 1,833 5.05% 166,666 1,529 3.67%Other interest-earning assets 8,305 222 10.72% 8,101 175 8.63%Total interest-earning assets 875,281 10,923 4.99% 898,062 10,061 4.49% Non-interest-earning assets 68,251 55,694 Total assets $943,532 $953,756 Liabilities and equity: NOW and money market accounts $79,400 $458 2.34% $69,450 $334 1.94%Savings accounts 45,832 225 1.99% 43,348 198 1.84%Certificates of deposit (1) 484,253 5,079 4.25% 516,496 5,438 4.23%Total interest-bearing deposits 609,485 5,762 3.83% 629,294 5,970 3.82% Federal Home Loan Bank advances (1) 158,116 1,568 4.02% 153,269 1,440 3.78%Total interest-bearing liabilities 767,601 7,330 3.87% 782,563 7,410 3.81%Non-interest-bearing deposits 32,763 30,018 Other non-interest-bearing liabilities 5,463 4,175 Total liabilities 805,827 816,756 Total equity 137,705 136,810 Total liabilities and equity $943,532 $953,566 Net interest income $3,593 $2,651 Interest rate spread (2) 1.12% 0.68%Net interest margin (3) 1.66% 1.18%Average interest-earning assets to average interest-bearing liabilities 114.03% 114.76% 1. Cash flow and fair value hedges are used to manage interest rate risk. During the three months ended March 31, 2025 and 2024, the net effect on interest expense on the Federal Home Loan Bank advances and certificates of deposit was a reduced expense of $177,000 and $288,000, 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 March 31, 2025 Compared to Three Months Ended March 31, 2024 Increase (Decrease) Due to Volume Rate Net (In thousands) Interest income: (unaudited) Cash and cash equivalents $108 $7 $115 Loans receivable (575) 971 396 Securities (1,093) 1,397 304 Other interest earning assets 4 43 47 Total interest-earning assets (1,555) 2,417 862 Interest expense: NOW and money market accounts 51 73 124 Savings accounts 11 16 27 Certificates of deposit (526) 167 (359)Federal Home Loan Bank advances 43 85 128 Total interest-bearing liabilities (421) 341 (80)Net decrease in net interest income $(1,134) $2,076 $942 ContactsKevin Pace – President & CEO, 201-862-0660 ext. 1110

Bogota Financial Corp. Reports Results for the Three Months Ended March 31, 2025

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