Executive Summary

Q1 2025 returned to profitability: net income $0.731M and diluted EPS $0.06 vs a net loss of $0.441M in Q1 2024; “total net revenue” rose on higher net interest income and a one-time BOLI death benefit accrual (~$0.543M) .
Net interest margin improved to 1.66% (vs 1.09% in Q4 2024 and 1.15% in Q3 2024) as balance sheet restructuring and hedging lowered funding costs and lifted asset yields .
Deposit mix shifted away from CDs; brokered deposits fell to 14.9% of deposits, and FHLB advances decreased by $32.4M QoQ, reducing wholesale funding reliance .
Management emphasized improved NIM from the Q4 2024 restructuring, mindful of rate uncertainty; they see modest loan growth near term with continued focus on credit quality .

What Went Well and What Went Wrong

What Went Well

Net interest income rose $0.942M YoY to $3.593M; spread widened 44 bps to 1.12% and NIM increased 48 bps to 1.66% YoY, reflecting balance sheet repositioning and hedging benefits .
Funding actions: FHLB advances reduced by $32.4M QoQ; brokered deposits down to 14.9% of deposits; deposit mix shows rising NOW/savings balances offsetting CDs .
Management tone: “positive outlook” and “immediate improvements from the balance sheet restructuring completed at the end of 2024… we remain… mindful… to improve our net interest margin” — Kevin Pace, CEO .

What Went Wrong

Operating leverage still tight: efficiency ratio a high 86.10% despite improvement vs Q4 2024; non-interest expense rose $0.217M YoY (occupancy +$0.300M post sale-leaseback) .
End-of-period deposit rate rose to 3.55% vs 3.42% in Q4, highlighting persistent pricing pressure even as average quarterly cost fell QoQ .
Loan balances declined QoQ (net loans -$10.2M), with softer demand in residential and construction; total deposits decreased $9.2M QoQ .

Financial Results

Metric	Q3 2024	Q4 2024	Q1 2025
Total Net Revenue ($USD Millions)	$2.985	$3.136	$4.563
Diluted EPS ($USD)	$(0.03)	$(0.07)	$0.06
Net Income ($USD Millions)	$(0.367)	$(0.930)	$0.731
Interest Rate Spread (%)	0.66%	0.61%	1.12%
Net Interest Margin (%)	1.15%	1.09%	1.66%
Efficiency Ratio (%)	120.78%	123.93%	86.10%

Notes: “Total Net Revenue” = Net interest income after (recovery) provision + total non-interest income (sum of line items cited).

KPIs and Balance Sheet/Deposit Metrics

KPI	Q3 2024	Q4 2024	Q1 2025
Avg Cost of Interest-Bearing Deposits (Quarter)	4.04%	4.02%	3.83%
End-of-Period Avg Deposit Rate	3.55%	3.42%	3.55%
Certificates of Deposit (% of Deposits)	78.47%	76.81%	75.19%
Brokered Deposits (% of Deposits)	16.1%	15.8%	14.9%
Uninsured Deposits (% of Deposits)	10.7%	6.9%	7.9%
FHLB Advances ($USD Millions)	$202.6	$172.2	$139.8
NPLs / Total Loans (%)	1.94%	1.95%	1.97%
Non-Performing Assets / Total Assets (%)	1.41%	1.44%	1.49%
ACL / NPLs (%)	19.94%	18.77%	18.65%

Income Statement Drivers (Q1 2025 YoY)

Component	Q1 2024	Q1 2025	YoY Change
Interest Income ($USD Millions)	$10.061	$10.924	+$0.862
Interest Expense ($USD Millions)	$7.410	$7.330	$(0.080)
Net Interest Income ($USD Millions)	$2.651	$3.593	+$0.942
(Recovery) Provision for Credit Losses ($USD Millions)	$0.035	$(0.080)	$(0.115)
Non-Interest Income ($USD Millions)	$0.299	$0.889	+$0.590
Non-Interest Expense ($USD Millions)	$3.643	$3.860	+$0.217

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	Q2–Q4 2025	None	None	Maintained (no guidance)
EPS	Q2–Q4 2025	None	None	Maintained (no guidance)
Net Interest Margin	2025	Qualitative only	“improve our net interest margin” (no range)	Qualitative reiteration
Opex/Occupancy	2025	None	Higher occupancy expense from sale-leaseback (no guidance)	Structural increase
Tax Rate	2025	None	Not guided; Q1 benefited from tax-free BOLI income	Informational
Dividends/Buybacks	2025	Prior buyback completed	No repurchase program outstanding as of Mar 31, 2025	Maintained (program completed)

Earnings Call Themes & Trends

Note: No Q1 2025 earnings call transcript found; themes below reflect press releases and 8‑K commentary .

Topic	Previous Mentions (Q3 2024)	Previous Mentions (Q4 2024)	Current Period (Q1 2025)	Trend
Balance sheet restructuring	None	Sale‑leaseback gain $9.0M; securities loss $8.9M; repositioning to higher yields	“Immediate improvements” from Q4 restructuring; NIM uplift	Positive execution/income impact
Deposit strategy/mix	CDs dominant; avg deposit cost 3.95% YTD; brokered 16.1%	Brokered 15.8%; NOW balances up	Brokered 14.9%; shift toward NOW/savings; end-period rate 3.55%	Gradual mix improvement, still rate-sensitive
Funding/wholesale	FHLB $202.6M	FHLB $172.2M	FHLB $139.8M; hedges reduced interest expense $0.177M	Lower reliance; hedging supports costs
Credit quality	Delinquencies up Q3; NPA 1.41%	NPA 1.44%; one large construction NPL noted	Delinquencies down QoQ; NPA 1.49%; no office exposure	Stable/slightly elevated NPA, improving delinquencies
Technology/AI	“Offering new technology through partnerships”	Not highlighted	Not highlighted	No material update
Macro/rates	Competitive deposit pricing pressure	Rate cuts referenced in Q4 cash yield	“Market turmoil… uncertainty around rates”	Continued caution

Management Commentary

“We continue to have a positive outlook… immediate improvements from the balance sheet restructuring… reflected on our financials. The current market turmoil has created uncertainty around rates. We remain… mindful… as we project our growth and look to improve our net interest margin.” — Kevin Pace, President & CEO .
“Credit quality remains a focus… we anticipate modest loan growth in the short term. Growth and diversification of our assets are a priority… and we remain dedicated to that vision.” — Kevin Pace .
Q4 2024 restructuring: “The sale-leaseback… allowed us to dispose of underperforming legacy investments without deteriorating regulatory capital… Reinvesting… at current market rates… and paying down higher cost borrowings will provide both short- and long-term benefits.” — Kevin Pace .

Q&A Highlights

No Q1 2025 earnings call transcript available; no Q&A content to report [ListDocuments: earnings-call-transcript not found for period].

Estimates Context

Wall Street consensus (S&P Global): No published consensus for EPS or revenue; Q1 2025 “Revenue” actual recorded at $4.563M (net interest income after provision plus non-interest income). Consensus counts absent; we interpret this as limited or no formal analyst coverage for quarterly estimates [GetEstimates: Revenue actual 4.5626M; no consensus entries]. Values retrieved from S&P Global.

Metric	Q1 2025
Primary EPS Consensus Mean	N/A (no published consensus)
Revenue Consensus Mean ($USD Millions)	$4.563 (actual only; no published consensus)
Primary EPS – # of Estimates	N/A
Revenue – # of Estimates	N/A

Key Takeaways for Investors

Earnings inflection: Positive EPS ($0.06) and materially higher NIM (1.66%) underscore early benefits from Q4 2024 restructuring and hedging, with further leverage if deposit costs continue easing .
Funding de-risking: Reduced FHLB advances ($139.8M) and brokered deposits (14.9%) lower wholesale reliance and support margin resilience amid rate uncertainty .
Operating efficiency remains a work-in-progress: Efficiency ratio improved to 86.10% but still elevated; sale-leaseback raises occupancy costs, making revenue/margin execution critical .
Credit steady but watchlist remains: NPA ratio modestly higher (1.49%) with QoQ delinquency improvement; no office CRE exposure, supporting risk appetite for modest loan growth .
Limited Street coverage: Absence of consensus estimates suggests lower sell-side visibility; catalysts will hinge on sustained NIM expansion, deposit repricing, and loan growth traction [GetEstimates].
Tactical implication: Near term, watch quarterly trend in average deposit costs (3.83% vs 4.02% prior quarter) and further declines in wholesale funding as potential drivers of additional NIM improvement .
Medium-term thesis: Balance sheet repositioning plus disciplined credit and funding could normalize profitability; execution on asset mix diversification and technology-enabled customer acquisition may enhance core deposit growth over time .

Bogota Financial Corp. (BSBK)·Q1 2025 Earnings Summary