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Bogota Financial Corp. (BSBK)·Q3 2025 Earnings Summary

Executive Summary

  • Returned to profitability: Q3 2025 net income was $0.46M ($0.04/share) vs a loss of $0.37M (-$0.03/share) a year ago as net interest income rose 46.6% YoY and the net interest margin expanded 65 bps to 1.80% .
  • Funding costs eased and borrowings fell: deposit costs declined (avg cost 3.58% in Q3 vs 4.04% a year ago) and FHLB advances down $52.8M YTD; hedges reduced Q3 interest expense by $205k .
  • Asset quality mixed: non‑performing assets rose to 2.21% of assets and delinquent loans to 3.24% of loans, driven by one $7.1M CRE credit deemed well‑secured and in collection; no charge‑offs .
  • Capital actions continue: regulatory approval for a sixth buyback (up to 237,590 shares); 4,821 shares repurchased by 9/30/25 for $42k .
  • Estimates context: S&P Global had no Q3 2025 EPS or revenue consensus for BSBK; therefore, no beat/miss determination is available (see “Estimates Context”) [functions.GetEstimates]*.

What Went Well and What Went Wrong

What Went Well

  • Core spread and margin improved: net interest margin rose to 1.80% (from 1.15% YoY) and spread to 1.30% (from 0.66%), lifting net interest income by $1.24M YoY .
  • Funding progress: average deposit cost fell 46 bps YoY to 3.58%, while hedges cut Q3 interest expense by $205k; borrowings declined materially YTD .
  • Management tone constructive: “continued resilience” with focus on commercial growth, core deposits, and customer service; prioritizing sustainable growth, operational efficiency, and shareholder value .

What Went Wrong

  • Loan balances contracted: net loans fell $42.5M YTD (‑6.0%) amid softer residential and construction demand; new production $24.0M vs repayments $68.4M .
  • Higher operating costs in spots: occupancy/equipment up 68% YoY tied to 4Q24 sale‑leaseback; professional fees up 46% YoY .
  • Asset quality pressure: NPAs increased to 2.21% of assets and NPLs to 3.06% of loans (vs 1.41% and 1.94% a year ago), though no charge‑offs and ACL/loans held at ~0.38% .

Financial Results

Income Statement Trends (quarterly)

Metric (USD)Q3 2024Q1 2025Q2 2025Q3 2025
Total Interest Income$10,620,262 $10,923,589 $10,505,164 $10,627,533
Total Interest Expense$7,962,934 $7,330,351 $6,810,559 $6,733,494
Net Interest Income$2,657,328 $3,593,238 $3,694,605 $3,894,039
Provision (Recovery)$0 $(80,000) $0 $(50,000)
NII After Provision$2,657,328 $3,673,238 $3,694,605 $3,944,039
Non‑Interest Income$327,385 $889,372 $331,710 $321,338
Non‑Interest Expense$3,604,894 $3,859,670 $3,854,502 $3,737,924
Pre‑Tax Income$(620,181) $702,940 $171,813 $527,453
Net Income$(366,960) $730,947 $224,395 $454,625
Diluted EPS$(0.03) $0.06 $0.02 $0.04

Notes: “NII After Provision” equals net interest income after provision (recovery) for credit losses.

Margins and Efficiency

KPIQ3 2024Q1 2025Q2 2025Q3 2025
Net Interest Margin1.15% 1.66% 1.74% 1.80%
Interest Rate Spread0.66% 1.12% 1.20% 1.30%
Efficiency Ratio120.78% 86.10% 95.73% 88.67%

“Net Revenue” (company construct: NII After Provision + Non‑Interest Income)

Metric (USD)Q3 2024Q1 2025Q2 2025Q3 2025
Net Revenue$2,984,713 $4,562,610 $4,026,315 $4,265,377

Balance Sheet Snapshot

MetricDec 31, 2024Jun 30, 2025Sep 30, 2025
Total Assets$971.5M $921.8M $925.8M
Net Loans$711.7M $693.2M $669.2M
Securities AFS$140.3M $144.6M $160.7M
Total Deposits$642.2M $628.2M $646.8M
FHLB Advances (Total)$172.2M $135.9M $119.4M
Stockholders’ Equity$137.3M $138.4M $140.7M

Deposit Mix (point‑in‑time)

CategoryDec 31, 2024 AmountMixAvg RateSep 30, 2025 AmountMixAvg Rate
Non‑interest Demand$32.7M 5.09% —$29.2M 4.52% —
NOW$55.4M 8.62% 2.53% $52.0M 8.04% 2.59%
Money Market$14.0M 2.18% 0.58% $10.4M 1.61% 0.46%
Savings$46.9M 7.30% 1.90% $52.6M 8.13% 2.04%
Certificates$493.3M 76.81% 4.37% $502.5M 77.70% 3.88%
Total Deposits$642.2M 100.00% 3.42% $646.8M 100.00% 3.40%
Brokered Deposits———$112.9M (17.5%) ——
Uninsured Deposits———9.2% of total ——

Loan Mix (point‑in‑time)

CategoryDec 31, 2024Sep 30, 2025
Residential First Mortgage$472.7M $449.6M
Commercial Real Estate$118.0M $122.8M
Multi‑Family$74.2M $70.4M
Construction$43.2M $25.2M
Commercial & Industrial$6.2M $3.7M
Consumer$0.08M $0.06M
Total Loans$714.3M $671.8M
ACL (Loans)$(2.62)M $(2.54)M

Asset Quality KPIs

KPIDec 31, 2024Jun 30, 2025Sep 30, 2025
Non‑Performing Loans / Total Loans1.94% 2.00% 3.06%
Non‑Performing Assets / Total Assets1.41% 1.50% 2.21%
ACL / Total Loans0.39% 0.37% 0.38%
Delinquent Loans$14.3M $20.4M $21.8M

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Company GuidanceFY/QuarterlyNone providedNone providedMaintained (no formal guidance)

Earnings Call Themes & Trends

No Q3 2025 earnings call transcript was found or filed; themes are drawn from management’s press releases.

TopicPrevious Mentions (Q1 & Q2 2025)Current Period (Q3 2025)Trend
Interest rate environmentQ1: “market turmoil” and positive impact from 4Q24 restructuring; focus on NIM . Q2: emphasized deposit cost reductions and hedging .Resilience despite challenging rates; continued hedging benefits; NIM +65 bps YoY .Improving margin, funding costs easing.
Loan demand/mixQ1: modest loan growth; residential and construction weaker; pivot to CRE . Q2: steady demand; push commercial while limiting risk .Residential/construction softness persists; CRE up $4.8M QoQ; net loans down YTD .Mix shifting to CRE; overall balances down.
Deposits/fundingQ1: reduce borrowings; deposit mix shift . Q2: average deposit costs down; certificates down, transactional up .Deposit costs down 46 bps YoY; FHLB advances -$52.8M YTD; brokered 17.5% .Funding cost relief; brokered use remains notable.
Asset qualityQ1: delinquencies down to $13.5M; no charge‑offs . Q2: delinquencies up to $20.4M (one $7.1M CRE); NPAs 1.50% .Delinquencies $21.8M; NPAs 2.21%; one $7.1M CRE well‑secured and in collection; no charge‑offs .Deterioration concentrated in one CRE; monitoring needed.
Capital returnsQ1: prior buyback complete . Q2: completed 5th buyback; TBV per minority share improved .Approval for 6th buyback (up to 237,590 shares); $42k repurchased by 9/30 .Ongoing repurchases support capital return.

Management Commentary

  • “Our third quarter results reflect our continued resilience despite a challenging interest rate environment. We continue to focus on growth in our commercial portfolio and maintaining high quality credit. Improved core deposit relationships and maintaining exceptional customer service remain a focal point.” — Kevin Pace, President & CEO .
  • “As we move into the final quarter of 2025, we remain focused on sustainable growth, operational efficiency and delivering long‑term value for our customers and shareholders.” — Kevin Pace .
  • Prior quarter context: “We remain dedicated to continued growth in our commercial portfolio while ensuring we limit risk… Growth in consumer and commercial deposits is another key initiative as we look to reduce cost of funds.” — Q2 release .
  • Q1 framing: “Immediate improvements from the balance sheet restructuring completed at the end of 2024…positive impact…reflected on our financials.” — Q1 release .

Q&A Highlights

No Q3 2025 earnings call or transcript was available; no Q&A to report [functions.ListDocuments; Internet search returned none].

Estimates Context

  • S&P Global did not show Q3 2025 EPS or revenue consensus for BSBK; consensus counts were unavailable, so beats/misses vs Street cannot be determined for EPS or revenue this quarter [functions.GetEstimates]*.
  • Where “Net Revenue” is referenced, it reconciles from company filings as NII after provision + non‑interest income (see Financial Results tables) .

*Values retrieved from S&P Global.

Key Takeaways for Investors

  • Margin rebuild is the story: NIM +65 bps YoY to 1.80% and spread +64 bps to 1.30% fueled the return to profitability; continued hedging and funding optimization should support margins near‑term .
  • Funding costs are easing while reliance on CDs remains high: average deposit cost down to 3.58% (from 4.04% YoY) with savings shift, but CDs still ~78% of deposits and brokered at 17.5%—sensitivity to rate path persists .
  • Balance sheet is smaller but higher‑yielding: loans down $42.5M YTD, securities up $20.4M after 4Q24 restructuring into higher yields; further NII tailwinds depend on reinvestment and loan demand .
  • Asset quality bears watching: NPLs/loans rose to 3.06% and NPAs/assets to 2.21% on one $7.1M CRE credit; absence of charge‑offs and low ACL/loans (0.38%) argue for close monitoring into 4Q .
  • Capital return optionality: 6th buyback approved; modest activity so far ($42k through 9/30), but provides flexibility if shares trade below tangible value .
  • Near‑term setup: sequential NIM gains and lower funding costs are constructive; loan growth remains subdued; headlines around asset quality (resolution of the $7.1M CRE) could be a stock catalyst .
  • Medium‑term thesis: execution on deposit mix improvement, disciplined CRE growth, and operating efficiency (post sale‑leaseback) are key to lifting ROA/ROE toward peer levels as rates normalize .