Bogota Financial (BSBK) Q3 2024 earnings summary

Executive summary

• Reported a net loss of $367,000 ($0.03 per share) for Q3 2024, compared to a net loss of $29,000 in Q3 2023; nine-month net loss was $1.2 million ($0.10 per share) versus net income of $1.8 million in the prior year period.

• Total assets increased 4.2% to $978.9 million since year-end 2023, driven by higher securities balances.

• Completed third stock repurchase program and began a fourth, repurchasing 163,790 shares for $1.2 million as of September 30, 2024.

• Focus remains on core deposit growth, commercial lending, and technology enhancements to attract new customers.

Financial highlights

• Net interest income for Q3 2024 was $2.7 million, down 17.4% year-over-year; for the nine months, it was $8.1 million, down 33.1%.

• Interest income rose 14.3% in Q3 and 12.4% for the nine months, but was offset by a 31.1% and 47.4% increase in interest expense, respectively.

• Non-interest income increased 13.0% in Q3 and 8.5% for the nine months, mainly from higher bank-owned life insurance income and loan sale gains.

• Non-interest expense decreased 1.5% in Q3 but rose 1.5% for the nine months, with higher professional and data processing fees offset by lower salaries.

• Efficiency ratio for Q3 2024 was 120.78%; for the nine months, 122.18%.

Outlook and guidance

• Management expects to maintain sufficient liquidity and capital, focusing on interest rate risk management and leveraging strategies for potential rate cuts.

• Continued focus on core deposit growth, commercial lending, and technology partnerships to drive customer acquisition in 2025.

• The company remains cautious regarding the interest rate environment and potential Federal Reserve actions.

• No material changes in risk factors or legal proceedings were reported.