Bogota Financial Corp. (BSBK)·Q2 2025 Earnings Summary

Executive Summary

• Q2 2025 delivered net income of $0.224M ($0.02 diluted EPS) as net interest income rose 34.7% YoY and net interest margin expanded 53 bps YoY to 1.74%, driven by lower deposit costs and hedge benefits offset by higher occupancy from a sale-leaseback .
• Balance sheet optimization continued: deposits fell 2.2% QoQ to $628.2M, FHLB advances were reduced by $36.2M (21.0%), and assets declined to $921.8M as excess liquidity paid down borrowings; uninsured deposits increased to 9.1% .
• Credit quality mixed: delinquencies rose to $20.4M (2.94% of loans) due to one well-secured CRE loan in collection; NPAs remained stable at 1.50% of assets; no charge-offs .
• Capital actions: the Company completed its 5th stock buyback and received approval on Aug 12 for a 6th program to repurchase up to 237,590 shares (≈5% of minority shares), reinforcing shareholder return priorities .
• Management reiterated focus on growing commercial loans and consumer/commercial deposits to reduce cost of funds; loan demand expected to uptick later in 2025/early 2026, a potential stock-reaction catalyst alongside improving spread/NIM and active repurchases .

What Went Well and What Went Wrong

What Went Well

• Net interest income and margin inflected: NII up $951k YoY to $3.695M; spread +48 bps YoY to 1.20%; NIM +53 bps YoY to 1.74% as deposit costs and borrowings declined and hedge programs reduced interest expense by $186k in the quarter .
• Deposit mix improved: certificates of deposit balances fell; total deposit average rate declined vs Dec 2024 to 3.37% at Q2-end; management emphasized deposit growth to reduce cost of funds .
• Expense discipline: salaries/benefits (-$83k YoY), advertising (-$99k YoY), and other non-interest expense (-$78k YoY) helped offset higher occupancy costs from sale-leaseback .
• Quote (CEO): “The first half of 2025 has fallen in line with our projections… We remain dedicated to continued growth in our commercial portfolio… Growth in consumer and commercial deposits is another key initiative as we look to reduce cost of funds.” .

What Went Wrong

• Sequential earnings down: net income fell to $0.224M from $0.731M in Q1 as Q1 non-interest income benefited from a one-time ~$543k BOLI death benefit; Q2 non-interest income was $0.332M vs $0.889M in Q1 .
• Occupancy and equipment expense surged (+$274k YoY) due to the Q4 2024 sale-leaseback, pressuring the efficiency ratio to 95.73% in Q2 (vs 86.10% in Q1) .
• Asset quality watch item: delinquencies increased to $20.4M (2.94% of loans), primarily one CRE loan at $7.1M; while well-secured and accruing, investors will monitor resolution pace .

Financial Results

Segment/Loan Mix

Deposits and Funding KPIs

Asset Quality

Guidance Changes

No formal quantitative revenue/EPS margin guidance provided in Q2 materials .

Earnings Call Themes & Trends

An earnings call transcript for Q2 2025 was not available in the document catalog.

Management Commentary

• Strategic focus: “We remain dedicated to continued growth in our commercial portfolio while ensuring we limit risk to certain markets and property types. Growth in consumer and commercial deposits is another key initiative as we look to reduce cost of funds.” – Kevin Pace, President & CEO .
• Shareholder returns: “We were able to complete our 5th stock buyback recently… improved our tangible book value per minority share from $22.04 to $29.10.” – Kevin Pace .
• Q1 context: “We have also experienced immediate improvements from the balance sheet restructuring completed at the end of 2024… We remain very mindful… as we project our growth and look to improve our net interest margin.” – Kevin Pace .
• Q4 context: “The sale-leaseback transaction gave us the ability to dispose of underperforming legacy investments without deteriorating regulatory capital… Reinvesting those funds… at current market rates… will provide both short- and long-term benefits.” – Kevin Pace .

Q&A Highlights

• No earnings call transcript identified for Q2 2025; Q&A highlights are not available from the document set.

Estimates Context

Values retrieved from S&P Global for revenue actual.
Note: Consensus estimates for EPS and revenue were unavailable in S&P Global for Q2 2025 for BSBK; revenue “actual” aligns with net revenue (net interest income + non-interest income) of $3.695M + $0.332M ≈ $4.026M .

Key Takeaways for Investors

• Margin momentum: Spread/NIM improved meaningfully YoY on lower deposit costs and hedge benefits; sustaining deposit repricing/mix and reduced borrowings are key to further NIM expansion .
• Earnings cadence: Q2 sequential EPS down due to absence of Q1’s one-time ~$543k BOLI benefit; underlying NII trajectory remains constructive .
• Credit watch: A single well-secured CRE exposure drove higher delinquencies; with NPAs steady and no charge-offs, resolution timing is the variable to monitor .
• Funding mix: Brokered deposits rose to 17.2% and uninsured deposits to 9.1%; management’s stated priority to grow core deposits is critical to cost-of-funds management and valuation .
• Capital return: Active buyback program (completed 5th; approved 6th) adds support to per-share metrics and tangible book value per minority share, underpinning shareholder return thesis .
• Tactical outlook: Expect an uptick in loan demand later 2025/early 2026; near-term trading may focus on margin trajectory and any updates on the CRE delinquent loan resolution .
• Actionable: Track deposit cost trend, hedging impact, brokered mix, and NIM progression each quarter; watch for incremental commentary on loan pipeline conversion and asset quality resolution in subsequent disclosures .