Bogota Financial Corp. Q1 2026 Filing Summary
Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended March 31, 2026. Bogota Financial Corp. operates as a mid-tier stock holding company for Bogota Savings Bank, providing retail and commercial banking services primarily in New Jersey. The company is classified as a non-accelerated filer and a smaller reporting company.
Key Financial Metrics
| Metric | Q1 2026 | Q1 2025 |
|---|---|---|
| Net Income | $705,946 | $730,947 |
| Earnings Per Share (Diluted) | $0.06 | $0.06 |
| Total Assets | $877.2 million | $943.5 million (Avg) |
| Total Deposits | $600.9 million | $652.4 million (Dec 2025) |
| Net Loans | $639.4 million | $647.6 million (Dec 2025) |
| Cash & Cash Equivalents | $27.9 million | $35.6 million (Dec 2025) |
| Net Interest Margin | 2.20% | 1.66% |
| Stockholders' Equity | $142.1 million | $140.9 million (Dec 2025) |
Material Changes vs. Prior Period
- Net Income: Decreased by approximately $25,000 (3.4%) compared to Q1 2025. This was driven by a $568,000 drop in non-interest income (due to a one-time death benefit received in the prior year) and a $240,000 increase in income tax expense.
- Net Interest Income: Increased by $833,000 (23.2%) to $4.4 million. The Net Interest Margin expanded 54 basis points to 2.20%, aided by a lower cost of funds (3.38% vs 3.83% in Q1 2025) despite a decrease in loan volumes.
- Deposits: Total deposits declined $51.6 million (7.9%) from year-end 2025, primarily due to a $65.4 million decrease in certificates of deposit. This was partially offset by growth in savings, money market, and NOW accounts.
- Borrowings: FHLB advances increased by $22.6 million to $115.9 million to offset deposit outflows. Short-term borrowings rose significantly while long-term advances decreased.
- Asset Quality: Non-performing loans increased slightly to $13.4 million (1.5% of total assets). The allowance for credit losses (ACL) was $2.6 million, representing 0.40% of total loans. A $50,000 provision was recorded due to increased delinquencies in commercial real estate.
Outlook, Risks, and Unusual Items
- Unusual Items: The significant decline in non-interest income year-over-year is attributed to a non-recurring death benefit received in Q1 2025 related to a former employee, which is not expected to recur.
- Asset Quality Concerns: Management highlighted a specific non-performing construction loan of $10.9 million (99% complete catering hall) with a 45% loan-to-value ratio. Legal foreclosure action is ongoing, but no specific reserve was recorded as the loan is considered well-secured.
- Interest Rate Risk: The company utilizes interest rate swaps (cash flow and fair value hedges) to manage exposure. Simulations indicate that a 400 basis point increase in rates would decrease Net Portfolio Value (NPV) by 31.12%, while a 400 basis point decrease would increase NPV by 33.97%.
- Liquidity: The company maintains ample liquidity with $27.9 million in cash and $144.9 million in available-for-sale securities. Total borrowing capacity at the FHLB is $236.4 million, with $115.9 million currently utilized.
- Capital: The bank is considered "well capitalized" with a Community Bank Leverage Ratio of 16.39%, exceeding the 9% threshold for qualifying community banks.
Investor Verification Checklist
- Verify the status and collateral valuation of the $10.9 million non-performing construction loan.
- Monitor the trend of deposit outflows, specifically the shift from certificates of deposit to core transactional accounts.
- Assess the sustainability of the Net Interest Margin expansion given the current interest rate environment and loan demand.
- Review the impact of the one-time death benefit on year-over-year non-interest income comparisons.
- Confirm the effectiveness of the interest rate hedging strategy against rising rate scenarios.