Bogota Financial (BSBK) Q4 2024 earnings summary

Executive summary

• Reported net loss of $930,000 ($0.07/share) for Q4 2024, improved from $1.2 million loss in Q4 2023; full-year 2024 net loss of $2.2 million ($0.17/share) versus net income of $643,000 in 2023.

• Asset growth of 3.4% year-over-year to $971.5 million, driven by higher cash and other assets, offset by lower net loans.

• Completed a balance sheet restructuring, including a sale-leaseback of branches (pre-tax gain $9.0 million) and sale of securities (pre-tax loss $8.9 million).

• Repurchased 188,047 shares for $1.4 million under ongoing buyback program.

Financial highlights

• Net interest income for Q4 2024 decreased 14.9% year-over-year to $2.5 million; full-year net interest income down 29.5% to $10.6 million.

• Interest income rose 10.7% in Q4 and 12.0% for the year, but interest expense increased 22.1% in Q4 and 39.9% for the year due to higher rates and balances.

• Non-interest income up 48.2% in Q4 and 18.4% for the year, aided by gains from sale-leaseback and higher bank-owned life insurance income.

• Non-interest expense fell 26.9% in Q4 and 7.4% for the year, mainly from lower salaries and reduced fraud-related costs.

• Total deposits increased 2.7% year-over-year to $642.2 million; average deposit rate rose to 3.73%.

Outlook and guidance

• Management expects repositioning actions to improve net interest margin and future earnings.

• Ongoing uncertainty around interest rates and competitive funding costs remain key considerations.