Bogota Financial Corp. Reports $730,947 Net Income for Q1 2025, Significant Turnaround from Loss in 2024

Bogota Financial Corp. reported a net income of $730,947 for the three months ended March 31, 2025, a significant turnaround from a net loss of $440,980 during the same period in 2024. This improvement was primarily driven by a 35.5% increase in net interest income, which rose to $3.6 million from $2.7 million year-over-year. The company also saw a notable increase in total interest income, which reached $10.9 million, up 8.6% from $10.1 million in the prior year, largely due to higher yields on interest-earning assets.

In terms of financial position, total assets decreased by $41.3 million, or 4.3%, to $930.2 million as of March 31, 2025, compared to $971.5 million at the end of 2024. This decline was attributed to a 51% drop in cash and cash equivalents, which fell to $25.6 million, and a 1.4% decrease in net loans, which totaled $701.5 million. The decrease in loans was influenced by reduced demand for residential and construction loans amid a challenging interest rate environment. Conversely, commercial real estate loans increased by 6.6% to $125.8 million.

On the operational front, Bogota Financial Corp. experienced a 197.4% increase in non-interest income, which amounted to $889,372, driven by a substantial rise in bank-owned life insurance income. The company also recorded a gain on the sale of loans, marking a positive development in its revenue streams. However, non-interest expenses rose by 5.9% to $3.9 million, primarily due to increased occupancy and equipment costs associated with a sale-leaseback transaction completed in late 2024.

The company’s total liabilities decreased by $42.3 million, or 5.1%, to $791.9 million, largely due to a $32.4 million reduction in borrowings and a $9.2 million decline in deposits. Deposits fell to $633 million, reflecting a decrease in certificates of deposit and money market accounts, although there was an increase in NOW and savings accounts. As of March 31, 2025, Bogota Financial Corp. maintained a strong capital position, with stockholders' equity rising to $138.3 million, bolstered by the recent net income and a reduction in accumulated other comprehensive loss.

Looking ahead, Bogota Financial Corp. anticipates continued challenges in the lending environment due to fluctuating interest rates and economic conditions. The company remains focused on managing its interest rate risk and maintaining liquidity to support its operations and growth strategies. The management is committed to monitoring market conditions closely and adjusting its strategies to enhance profitability and shareholder value.