Bogota Financial Corp. 10-Q Summary
Business Context and Reporting Period
Company: Bogota Financial Corp. (BSBK)
Reporting Period: Quarter and six months ended June 30, 2026
Business Overview: A community bank operating in New Jersey, providing retail and commercial banking services. The company is a mid-tier stock holding company for Bogota Savings Bank.
Key Event: On June 1, 2026, the Bank entered into a definitive agreement to acquire GSL Savings Bank (approx. $151.2M assets), expected to close in the second half of 2026.
Key Financial Metrics
| Metric | Q2 2026 (3 Months) | Q2 2025 (3 Months) | YTD 2026 (6 Months) | YTD 2025 (6 Months) |
|---|---|---|---|---|
| Net Income | $747,522 | $224,395 | $1,453,468 | $955,342 |
| Earnings Per Share (Diluted) | $0.06 | $0.02 | $0.12 | $0.08 |
| Net Interest Income | $3,839,712 | $3,694,605 | $8,266,203 | $7,287,843 |
| Net Interest Margin | 1.94% | 1.74% | 2.06% | 1.70% |
| Provision for Credit Losses | $0 | $0 | $50,000 | ($80,000) Recovery |
| Total Assets (Period End) | $874.99 Million (June 30, 2026) | |||
| Total Deposits (Period End) | $574.22 Million (June 30, 2026) | |||
| Stockholders' Equity (Period End) | $141.97 Million (June 30, 2026) |
Material Changes vs. Prior Period
- Profitability: Net income increased 233% year-over-year for the quarter and 52% year-over-year for the six months. This was driven by a 99% increase in non-interest income (Q2) and a 13% increase in net interest income (YTD).
- Asset Composition: Total assets decreased 3.3% from year-end 2025 to $875.0 million. This was due to a $17.7 million decrease in securities available for sale and a $10.3 million decrease in net loans.
- Loan Portfolio: Net loans decreased 1.6% to $637.3 million. Decreases in residential, construction, and commercial real estate loans were offset by an 11.2% increase in multi-family real estate loans.
- Deposits and Borrowings: Total deposits decreased 12.0% ($78.2 million) to $574.2 million, primarily due to a $91.4 million drop in certificates of deposit. To offset this outflow, FHLB borrowings increased 51.1% to $141.0 million.
- Asset Quality: Non-performing loans increased significantly from $13.3 million (Dec 31, 2025) to $27.8 million (June 30, 2026), representing 3.2% of total assets. This increase was driven by a $10.9 million construction loan and two commercial real estate loans totaling $12.5 million. Management states these are well-secured with no specific reserves recorded.
Outlook, Risks, and Unusual Items
- Unusual Items: Non-interest income for the quarter included a $300,000 collection on an insurance claim related to a previous year's fraud loss. YTD non-interest income was also impacted by a $564,000 death benefit received in the prior year that did not recur.
- Merger Activity: The proposed acquisition of GSL Savings Bank is subject to regulatory approvals and member votes. Risks include the inability to close the merger or integration challenges.
- Interest Rate Risk: The company uses derivatives (interest rate swaps) to manage interest rate risk. As of June 30, 2026, cash flow hedges had a notional value of $67.5 million and fair value hedges totaled $30.0 million.
- Capital Position: The company is considered "well capitalized" with a Community Bank Leverage Ratio of 16.39%.
- Stock Repurchases: The company repurchased 139,558 shares in Q2 2026 at an average price of $8.67. Approximately 7,046 shares remain available under the current program.
Investor Verification Checklist
- Non-Performing Loan Details: Verify the collateral value and foreclosure status of the $27.8 million in non-performing loans, specifically the $10.9 million construction loan and the $12.5 million in commercial real estate loans.
- Deposit Stability: Assess the sustainability of the 12% deposit outflow and the reliance on FHLB borrowings (which increased to $141M) to fund operations.
- Merger Timeline: Monitor the regulatory approval status and closing conditions for the GSL Savings Bank acquisition.
- Non-Recurring Income: Adjust earnings analysis to exclude the $300,000 insurance claim recovery to understand core operating performance.
- Loan Demand: Evaluate the impact of the interest rate environment on the continued decline in residential and construction loan demand.