Bogota Financial Corp. Reports Net Income of $224,395 for Q2 2025, Up from Loss in 2024

Bogota Financial Corp. reported a net income of $224,395 for the three months ended June 30, 2025, a significant improvement from a net loss of $432,479 during the same period in 2024. This increase in profitability was primarily driven by a 34.7% rise in net interest income, which reached $3.7 million, compared to $2.7 million in the prior year. Total interest income for the quarter was $10.5 million, slightly up from $10.5 million in the previous year, while interest expense decreased to $6.8 million from $7.7 million, reflecting lower average balances on interest-bearing deposits and borrowings.

In terms of overall financial performance, Bogota Financial's total assets decreased by 5.1% to $921.8 million as of June 30, 2025, down from $971.5 million at the end of 2024. This decline was attributed to a $31.9 million drop in cash and cash equivalents and an $18.5 million decrease in net loans, which fell to $693.2 million. The decrease in loans was primarily due to reduced demand for one- to four-family residential and construction loans, influenced by the prevailing interest rate environment. However, the company saw a $4.3 million increase in securities available for sale, totaling $144.6 million.

Operationally, Bogota Financial experienced a 2.2% decline in total deposits, which amounted to $628.2 million at the end of June 2025. This decrease was reflected across various deposit categories, including a $11.5 million drop in certificates of deposit. The company’s allowance for credit losses remained stable at 0.37% of total loans, with non-performing loans slightly decreasing to $13.9 million, representing 1.5% of total assets. The company did not record any charge-offs during the quarter, indicating a stable asset quality.

Looking ahead, Bogota Financial Corp. remains focused on managing its interest rate risk and maintaining liquidity. The company has a borrowing capacity of $241.3 million from the Federal Home Loan Bank, of which $136 million was utilized as of June 30, 2025. The management anticipates that the current economic conditions and interest rate environment will continue to influence its lending and deposit strategies. The company is committed to enhancing its capital position and ensuring compliance with regulatory capital requirements, having reported a capital ratio of 15.40%, well above the minimum threshold for being considered "well capitalized."