Executive Summary

Q4 2024 GAAP EPS was $(0.07) on a net loss of $(0.93)M; YoY improved from $(0.09) but worsened QoQ from $(0.01). Net interest margin compressed to 1.09% and spread to 0.61%, reflecting elevated funding costs despite hedge benefits .
Executed balance sheet repositioning: $9.0M pre-tax gain from a three-branch sale-leaseback offset by an $8.9M pre-tax loss on ~$66.0M of securities sold; proceeds redeployed into higher-yielding securities (~5.60% in the Feb release; ~5.49% in Jan announcement), loans at current rates, and paydown of higher-cost borrowings .
Deposits rose to $642.2M (+$16.9M YoY), brokered deposits were $101.6M (15.8%), uninsured deposits fell to 6.9%; FHLB advances were $172.2M with $280.4M capacity, positioning liquidity as stable albeit rate-sensitive .
Operating discipline: non-interest expense fell 26.9% YoY in Q4 (notably salaries/benefits and professional fees), partially offsetting higher interest expense and a tax expense related to reserves on uncertain deferred tax assets .

What Went Well and What Went Wrong

What Went Well
- Strategic repositioning completed: “The sale-leaseback transaction gave us the ability to dispose of underperforming legacy investments without deteriorating regulatory capital…strengthen our balance sheet and improve future earnings.” – CEO Kevin Pace .
- Expense control: Q4 non-interest expense down 26.9% YoY; salaries/benefits down 25.2% and professional fees down 56.9% YoY .
- Funding and liquidity mix improving at the margin: deposits +$16.9M YoY to $642.2M, uninsured deposits at 6.9% of total; brokered deposits manageable at 15.8% of deposits .
What Went Wrong
- Margin pressure persisted: Q4 net interest margin 1.09% (vs 1.24% in Q3 and 1.35% YoY), spread 0.61% (vs 0.81% in Q3 and 0.88% YoY), as deposit and borrowing costs outpaced asset yield expansion .
- Interest expense rose sharply YoY: Q4 total interest expense $8.10M vs $6.63M, with deposit cost up to 4.02% and higher average FHLB balances despite hedge offsets .
- Tax expense swing: Q4 booked $0.45M tax expense vs a $0.55M benefit YoY due to reserves on uncertain deferred tax assets, contributing to the net loss .

Financial Results

Metric	Q4 2023	Q3 2024	Q4 2024
Net (Loss) Income ($)	$(1,177,760)	$(146,960)	$(930,001)
Diluted EPS ($)	$(0.09)	$(0.01)	$(0.07)
Total Interest Income ($)	$9,566,034	$10,620,262	$10,594,087
Total Interest Expense ($)	$6,628,109	$7,662,934	$8,095,156
Net Interest Income ($)	$2,937,925	$2,957,328	$2,498,931
Non-Interest Income ($)	$282,546	$327,385	$418,737
Non-Interest Expense ($)	$4,946,189	$3,604,894	$3,615,835
(Loss) Income Before Taxes ($)	$(1,725,718)	$(320,181)	$(480,167)
Income Tax (Benefit) Expense ($)	$(547,958)	$(173,221)	$449,834
Net Interest Margin (%)	1.35%	1.24%	1.09%
Interest Rate Spread (%)	0.88%	0.81%	0.61%
Efficiency Ratio (%)	153.59%	109.75%	123.93%

Note: For banks, “revenue” is commonly evaluated through net interest income and non-interest income; total interest income is shown as a revenue proxy.

Segment breakdown: Not applicable (single banking segment) .

KPIs and Balance Sheet

Metric	Dec 31, 2023	Sep 30, 2024	Dec 31, 2024
Total Assets ($)	$939,324,203	$978,809,264	$971,489,884
Total Deposits ($)	$625,347,142	$629,267,737	$642,188,042
Brokered Deposits ($ / % of Deposits)	—	$101.1M / 16.1%	$101.6M / 15.8%
Uninsured Deposits (% of Deposits)	—	10.7%	6.9%
FHLB Advances ($)	$167,689,663	$202,565,610	$172,173,182
Net Loans ($)	$714,688,635	$708,896,566	$711,716,236
NPLs / Total Loans (%)	1.79%	1.94%	1.95%
NPAs / Assets (%)	1.36%	1.41%	1.44%
ACL / Loans (%)	0.39%	0.39%	0.37%
Net Charge-offs to Avg Loans (%)	0.00%	0.00%	0.00%
Avg Cost of Interest-Bearing Deposits (Quarter)	3.41% (Q4’23)	3.84% (Q3’24)	4.02% (Q4’24)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Company Guidance	2025/Forward	Not provided	Not provided	Maintained (no formal guidance)

No formal quantitative guidance (revenue/NIM/OpEx/tax/dividends) disclosed in the Q4 materials; strategic direction emphasizes margin improvement from balance sheet repositioning and continued buybacks .

Earnings Call Themes & Trends

(No transcript located; themes drawn from Q2–Q4 press releases.)

Topic	Previous Mentions (Q2 & Q3 2024)	Current Period (Q4 2024)	Trend
Net interest margin and hedging	Margin pressure from higher deposit/borrowing costs; hedges reduced expense ($461k in Q2; $498k in Q3) .	NIM 1.09%; hedges reduced Q4 interest expense by ~$280k; repositioning expected to improve NIM .	Pressure persists; actions taken to improve.
Deposit composition/cost	Rising CD mix and deposit costs (avg cost 3.99% in Q2; 3.84% in Q3) .	Avg cost 4.02% in Q4; deposits +$16.9M YoY; uninsured 6.9% .	Costs elevated; funding base stable.
Balance sheet strategy	Building securities, leveraging hedges; discussed technology initiatives and growth .	Sale-leaseback + securities sales to redeploy at ~5.60% reinvestment yields; remove HTM classification .	Pivot to higher-yielding assets; flexibility improved.
Credit quality	No charge-offs; delinquency uptick in Q3; office CRE exposure none .	NPAs 1.44% of assets; ACL 0.37%; no office CRE exposure .	Stable-to-mixed; elevated but managed.
Technology/commercial focus	Focus on core deposits and commercial lending; tech partnerships highlighted .	Continued focus; not expanded in Q4 release beyond strategy .	Ongoing execution.

Management Commentary

“We were able to accomplish a key piece of our strategic plan this quarter…strengthen our balance sheet and improve future earnings…Reinvesting those funds in securities and loans at current market rates, as well as paying down higher cost borrowings, will provide both short- and long-term benefits.” – Kevin Pace, President & CEO .
“Uncertainty around rates continues…The repositioning will help…while improving our net interest margin.” – Kevin Pace .
“The Bank entered into a sale-leaseback transaction…$9.0 million pre-tax gain…realized a pre-tax loss of $8.9 million on…~$66.0 million of securities…reinvested…yielding approximately 5.49%…remaining proceeds will be used to fund loans…6.50% to 7.75%…as well as pay down higher cost borrowings.” – Company press release on restructuring .

Q&A Highlights

N/A – No earnings call transcript was available; analysis is based on the company’s Q4 earnings press release and related disclosures .

Estimates Context

We were unable to retrieve S&P Global (Capital IQ) consensus estimates for Q4 2024 at this time; as a result, comparisons to consensus EPS and revenue are not available. Treat estimate-based comparisons as unavailable for this recap.

Key Takeaways for Investors

Margin reset underway: structural NIM pressure (1.09% in Q4; spread 0.61%) should ease as proceeds are redeployed into ~5.5%+ assets and higher-cost borrowings are reduced; monitor the pace of remix and hedge benefits .
Funding stability improving: deposits +$16.9M YoY, uninsured deposits down to 6.9%; brokered concentration manageable at 15.8%—reduces liquidity risk though keeps cost sensitivity elevated .
Expense discipline is tangible: Q4 non-interest expense down ~27% YoY, aiding pre-provision profitability amid higher funding costs .
Asset quality watchlist: NPAs 1.44% of assets and NPLs ~1.95% of loans with concentration in a single construction loan; no office exposure—risk appears contained but elevated vs year-ago .
Tax item was a swing factor: Q4 tax expense of $0.45M due to valuation reserves on certain deferred tax assets; watch for reversals or further adjustments .
Capital and flexibility: minimal change in equity YoY; removal of HTM classification increases optionality for future repositioning .
Near-term trading setup: catalysts include visible NIM expansion from higher-yield redeployments and potential relief in deposit costs if/when rate cuts progress; risks include prolonged funding cost pressure and slower-than-expected asset yield lift-through .

Bogota Financial Corp. (BSBK)·Q4 2024 Earnings Summary