Bogota Financial Corp. Reports 52% Increase in Net Income to $1.5 Million for Six Months Ended June 30, 2026

Bogota Financial Corp. reported a net income of $1.5 million for the six months ended June 30, 2026, a 52% increase from $955,000 in the same period last year. The company's net interest income rose to $8.3 million, up 13.4% from $7.3 million, driven by a higher net interest rate spread of 1.49%, compared to 1.15% in the prior year. However, total interest income decreased by 6.3% to $20.1 million, primarily due to a decline in loan balances and yields, despite an increase in interest income from securities.

Total assets decreased by 3.3% to $875 million as of June 30, 2026, down from $904.9 million at the end of 2025. This decline was attributed to a $10.3 million drop in net loans and a $17.7 million reduction in securities available for sale. Cash and cash equivalents also fell by 16.6% to $29.9 million, reflecting the company's strategy to offset deposit outflows with excess funds from increased borrowings and loan repayments.

In terms of operational metrics, Bogota Financial's total liabilities decreased by 4.1% to $733 million, primarily due to a significant $78.2 million drop in deposits. The company reported a decrease in certificates of deposit, which fell by 18.5% to $402.5 million. Conversely, borrowings from the Federal Home Loan Bank increased by 51.1% to $141 million, indicating a shift in funding strategy amid declining deposit levels.

The company is also pursuing strategic growth through the planned acquisition of GSL Savings Bank, which is expected to close in the second half of 2026, pending regulatory approvals. GSL has approximately $151.2 million in assets and $120.4 million in deposits. This acquisition is anticipated to enhance Bogota Financial's market presence and operational scale in New Jersey.

Looking ahead, Bogota Financial Corp. remains focused on managing its interest rate risk and improving its asset quality. The company reported an increase in delinquent loans, which rose to $27.9 million, or 4.4% of total loans, as of June 30, 2026. Despite this, all delinquent loans are considered well-secured, and the company has not recorded any charge-offs. The management is optimistic about future performance, supported by its strategic initiatives and ongoing efforts to enhance liquidity and capital resources.