Bogota Financial Corp. Reports Results for the Three and Six Months Ended June 30, 2022

Bogota Financial Corp. (NASDAQ: BSBK) (the “Company”), the holding company for Bogota Savings Bank (the “Bank”), reported net income for the three months ended June 30, 2022 of $1.6 million, compared to net income of $1.4 million for the comparable prior year period. The Company reported net income for the six months ended June 30, 2022 of $3.0 million compared to net income of $4.4 million for the comparable prior year period. During the six months ended June 30, 2021, the Company recorded a bargain purchase gain of $1.9 million, and merger-related expenses of $392,000, each of which was associated with the acquisition of Gibraltar Bank. Excluding the bargain purchase gain and the merger-related expenses in 2021, net income for the six months ended June 31, 2021 was $2.9 million, compared to the $3.0 million for the current-year period.1

On April 11, 2022, the Company announced it completed its initial 5% buyback plan, purchasing 296,044 shares. On May 25, 2022, the Company announced that it has received regulatory approval for the repurchase of up to 292,568 shares of its common stock, which is approximately 5% of its then outstanding common stock. As of June 30, 2022, the Company had repurchased 145,582 shares under the second buyback plan.

Other Financial Highlights:

  • Total assets increased $37.6 million, or 4.5%, to $874.9 million at June 30, 2022 from $837.4 million at December 31, 2021, due to an increase in loans and securities, which was primarily funded by cash and cash equivalents, deposits and borrowings.
  • Net loans increased $60.6 million, or 10.6%, to $630.8 million at June 30, 2022 from $570.2 million at December 31, 2021.
  • Total deposits were $611.3 million, increasing $13.8 million, or 2.3%, as compared to $597.5 million at December 31, 2021, primarily due to a new $11.0 million municipal deposit relationship. The average rate paid on deposits at June 30, 2022 increased four basis points to 0.65% at June 30, 2022 from 0.61% at December 31, 2021.
  • Return on average assets was 0.73% for the six-month period ended June 30, 2022 compared to 1.12% for the comparable period in 2021. Without the bargain purchase gain and merger-related expenses in 2021, the return on average assets would have been 0.74%1 for the six-month period ended June 30, 2021.
  • Return on average equity was 4.26% for the six-month period ended June 30, 2022 compared to 6.46% for the comparable period in 2021. Without the bargain purchase gain and merger-related expenses in 2021, the return on average equity would have been 4.24%1 for the six-month period ended June 30, 2021.

Joseph Coccaro, President and Chief Executive Officer, said, “We are pleased with our results for the first half of 2022. We had over $100 million in new loan originations which has increased our loan portfolio over $60 million during the year, while continuing to have strong credit quality as non-performing loans and criticized assets remain very low. We continue to see improvement in our net interest margin which rose 29 basis points and 41 basis points as compared to the three and six months ended June 30, 2021 respectively.“

Mr. Coccaro further stated, "During the last year we completed the acquisition of Gibraltar Bank including a business system conversion and opened our sixth branch location in Hasbrouck Heights. This year we expect to grow loan and deposit balances and are forecasting for assets to increase to $900 million. However, forecasted rate hikes, higher inflation and a low inventory in housing continue to present challenges."

[1] This number represents a non-GAAP financial measure. Please see “Reconciliation of GAAP to Non-GAAP” contained at the end of this release.

Income Statement Analysis

Comparison of Operating Results for the Three Months Ended June 30, 2022 and June 30, 2021

Net income increased by $203,000, or 14.1%, to $1.6 million for the three months ended June 30, 2022 from $1.4 million for the three months ended June 30, 2021. The increase was due to an increase in net interest income of $931,000, offset by a decrease in non-interest income of $280,000 and an increase of $154,000 in provision for loan losses.

Interest income on cash and cash equivalents decreased $13,000, or 31.7%, to $28,000 for the three months ended June 30, 2022 from $41,000 for the three months ended June 30, 2021 due to a $79.2 million decrease in the average balance of cash and cash equivalents to $20.7 million for the three months ended June 30, 2022 from $100.0 million for the three months ended June 30, 2021, reflecting the use of excess liquidity to fund loan originations and purchase investment securities. This was offset by a 39 basis point increase in the average yield on cash and cash equivalents from 0.16% for the three months ended June 30, 2021 to 0.55% for the three months ended June 30, 2022 due to the higher interest rate environment.

Interest income on loans increased $164,000, or 2.9%, to $5.8 million for the three months ended June 30, 2022 compared to $5.7 million for the three months ended June 30, 2021 due to a nine basis point increase in the average yield on loans from 3.86% for the three months ended June 30, 2021 to 3.95% for the three months ended June 30, 2022 and by a $2.6 million increase in the average balance of loans to $593.7 million for the three months ended June 30, 2022 from $591.1 million for the three months ended June 30, 2021.

Interest income on securities increased $577,000, or 143.9%, to $979,000 for the three months ended June 30, 2022 from $402,000 for the three months ended June 30, 2021 due to a 29 basis point increase in the average yield from 1.86% for the three months ended June 30, 2021 to 2.15% for the three months ended June 30, 2022. The increase was also due to a $95.7 million increase in the average balance of securities to $182.3 million for the three months ended June 30, 2022 from $86.6 million for the three months ended June 30, 2021, reflecting the purchase of investments with excess liquidity.

Interest expense on interest-bearing deposits decreased $201,000, or 19.1%, to $850,000 for the three months ended June 30, 2022 from $1.1 million for the three months ended June 30, 2021. The decrease was due primarily to a 19 basis point decrease in the average cost of interest-bearing deposits to 0.59% for the three months ended June 30, 2022 from 0.78% for the three months ended June 30, 2021. The decrease in the average cost of deposits was due to lower average balances and lower average costs of certificates of deposit. This decrease was offset by a $40.3 million increase in the average balance of total deposits to $579.2 million for the three months ended June 30, 2022 from $539.0 million for the three months ended June 30, 2021.

Interest expense on Federal Home Loan Bank borrowings decreased $20,000, or 5.4%, from $376,000 for the three months ended June 30, 2021 to $356,000 for the three months ended June 30, 2022. The decrease was due to a decrease in the average balance of borrowings of $13.8 million to $86.4 million for the three months ended June 30, 2022 from $100.3 million for the three months ended June 30, 2021. The decrease was offset by an increase in the average cost of borrowings of nine basis points to 1.59% for the three months ended June 30, 2022 from 1.50% for the three months ended June 30, 2021 due to the higher rates on newer borrowings.

Net interest income increased $930,000, or 19.5%, to $5.7 million for the three months ended June 30, 2022 from $4.8 million for the three months ended June 30, 2021. The increase reflected a 45 basis point increase in our net interest rate spread to 2.73% for the three months ended June 30, 2022 from 2.28% for the three months ended June 30, 2021. Our net interest margin increased 41 basis points to 2.85% for the three months ended June 30, 2022 from 2.44% for the three months ended June 30, 2021.

We recorded a $100,000 provision for loan losses for the three months ended June 30, 2022 compared to a $54,000 credit for the three-month period ended June 30, 2021. Higher balances in residential and construction loans were the reason for the provision for the three months ended June 30, 2022. The Bank continues to have a low level of delinquent and non-accrual loans in the portfolio, as well as no charge-offs.

Non-interest income decreased by $280,000, or 52.4%, to $254,000 for the three months ended June 30, 2022 from $533,000 for the three months ended June 30, 2021. Gain on sale of loans decreased $284,000 as the Bank decided to portfolio loans rather than sell loans. This decrease was offset by a $24,000, or 16.5% increase in bank-owned life insurance to $169,000 for the three months ended June 30, 2022 from $145,000 for the three months ended June 30, 2022.

For the three months ended June 30, 2022, non-interest expense increased $17,000, or 0.5%, over the comparable 2021 period. Salaries and employee benefits increased $64,000, or 3.1%, due to the new stock compensation plan established in September 2021. Data processing expense increased $18,000, or 5.9%, due to higher data processing expense associated with being a larger organization. Professional fees decreased $57,000, or 27.5%, due in part to lower legal expense in 2022. Merger fees expenses were $74,000 in 2021. The increase in occupancy and equipment expenses of $48,000, or 16.2%, was due to increased costs for the acquired Gibraltar Bank branches and the new Hasbrouck Heights branch office.

Comparison of Operating Results for the Six Months Ended June 30, 2022 and June 30, 2021

Net income decreased by $1.4 million, or 31.5%, to $3.0 million for the six months ended June 30, 2022 from $4.4 million for the six months ended June 30, 2021. The decrease was due to a decrease in non-interest income of $2.3 million, an increase in non-interest expenses of $126,000, an increase in provision for loan losses of $213,000, and an increase of $284,000 in income taxes offset by an increase in net interest income of $1.5 million. Excluding the one-time bargain purchase gain of $1.9 million that occurred in 2021 in connection with the Gibraltar Bank acquisition and the merger related expenses, net income would have increased $139,000 for the six months ended June 30, 2022 as compared to the comparable period in 20211.

Interest income on cash and cash equivalents decreased $34,000, or 37.4%, to $57,000 for the six months ended June 30, 2022 from $91,000 for the six months ended June 30, 2021 due to a $49.6 million decrease in the average balance of cash and cash equivalents to $46.0 million for the six months ended June 30, 2022 from $95.6 million for the six months ended June 30, 2021, reflecting the use of excess liquidity to fund loan originations and purchase investment securities. This was offset by a six basis point increase in the average yield on cash and cash equivalents from 0.19% for the six months ended June 30, 2021 to 0.25% for the six months ended June 30, 2022 due to the higher interest rate environment.

Interest income on loans increased $236,000, or 2.1%, to $11.4 million for the six months ended June 30, 2022 compared to $11.2 million for the six months ended June 30, 2021 due to a nine basis point increase in the average yield on loans from 3.83% for the six months ended June 30, 2021 to 3.92% for the six months ended June 30, 2022 offset by a $2.5 million decrease in the average balance of loans to $582.8 million for the six months ended June 30, 2022 from $585.3 million for the six months ended June 30, 2021.

Interest income on securities increased $550,000, or 51.7%, to $1.6 million for the six months ended June 30, 2022 from $1.1 million for the six months ended June 30, 2021 due to an $82.2 million increase in the average balance of securities to $160.7 million for the six months ended June 30, 2022 from $78.5 million for the six months ended June 30, 2021, reflecting the purchase of investments with excess liquidity. The increase was offset by a 73 basis point decrease in the average yield from 2.77% for the six months ended June 30, 2021 to 2.04% for the six months ended June 30, 2022.

[1] This number represents a non-GAAP financial measure. Please see “Reconciliation of GAAP to Non-GAAP” contained at the end of this release.

Interest expense on interest-bearing deposits decreased $638,000, or 27.6%, to $1.7 million for the six months ended June 30, 2022 from $2.3 million for the six months ended June 30, 2021. The decrease was due primarily to a 31 basis point decrease in the average cost of interest-bearing deposits to 0.59% for the six months ended June 30, 2022 from 0.90% for the six months ended June 30, 2021. The decrease in the average cost of deposits was due to lower average balances and lower average costs of certificates of deposit. This decrease was offset by a $48.9 million increase in the average balance of deposits to $570.2 million for the six months ended June 30, 2022 from $521.3 million for the six months ended June 30, 2021.

Interest expense on Federal Home Loan Bank borrowings decreased $122,000, or 15.1%, from $808,000 for the six months ended June 30, 2021 to $686,000 for the six months ended June 30, 2022. The decrease was due to a decrease in the average balance of borrowings of $19.5 million to $84.4 million for the six months ended June 30, 2022 from $103.9 million for the six months ended June 30, 2021. The decrease was offset by an increase in the average cost of borrowings of seven basis points to 1.64% for the six months ended June 30, 2022 from 1.57% for the six months ended June 30, 2021 due to the higher new rates on borrowings.

Net interest income increased $1.5 million, or 15.8%, to $10.8 million for the six months ended June 30, 2022 from $9.4 million for the six months ended June 30, 2021. The increase reflected a 34 basis point increase in our net interest rate spread to 2.61% for the six months ended June 30, 2022 from 2.27% for the six months ended June 30, 2021. Our net interest margin increased 29 basis points to 2.75% for the six months ended June 30, 2022 from 2.46% for the six months ended June 30, 2021.

We recorded a $100,000 provision for loan losses the six months ended June 30, 2022 compared to a $113,000 credit for the six-month period ended June 30, 2021. Higher balances in residential and construction loans were the reason for the provision for the six months ended June 30, 2022. The Bank continues to have a low level of delinquent and non-accrual loans in the portfolio, as well as no charge-offs.

Non-interest income decreased by $2.3 million, or 79.0%, to $598,000 for the six months ended June 30, 2022 from $2.9 million for the six months ended June 30, 2021. For the six months ended June 30, 2021, there was a $1.9 million bargain purchase gain recognized in the Gibraltar Bank acquisition in 2021. Gain on sale of loans decreased $433,000, or 83.3%, to $87,000 for the six months ended June 30, 2022 from $520,000 for the six months ended June 30, 2021. Bank-owned life insurance income increased $91,000, or 38.6%, to $325,000 for the six months ended June 30, 2022 from $235,000 for the six months ended June 30, 202.

For the six months ended June 30, 2022, non-interest expense increased $126,000, or 1.8%, to $7.1 million, over the comparable 2021 period. Salaries and employee benefits increased $588,000, or 16.4%, due to new stock compensation plan started in September 2021. Data processing expense increased $88,000, or 17.0%, due to higher data processing expense associated with a larger company. Advertising expense increased $92,000 due to additional promotions for branch locations and new promotions. Professional fees decreased $172,000, or 36.8%, due to lower consulting expense. Merger fees and core conversion costs were $752,000 in 2021. The increase in equipment and occupancy expenses of $126,000, or 22.4%, was mainly due to the additional branch locations.

Balance Sheet Analysis

Total assets were $874.9 million at June 30, 2022, representing an increase of $37.6 million, or 4.5%, from December 31, 2021. Cash and cash equivalents decreased $97.5 million during the period primarily due to funding of loan originations and investment purchases with excess liquidity. Net loans increased $60.6 million, or 10.6%, due to new production of $103.1 million, consisting of a mainly residential real estate loans and construction loans offset by $42.5 million in repayments. Securities held to maturity increased $12.4 million due to the purchase of corporate bonds and mortgage-backed securities with excess cash. Securities available for sale increased $55.7 million due to the purchase of mortgage-backed securities and corporate bonds with excess cash. Bank-owned life insurance increased $5.3 million or 21.7% due to a $5.0 million purchase of bank-owned life insurance during the six months ended June 30, 2022.

Delinquent loans increased $94,000, or 23.7%, during the six-month period ended June 30, 2022, finishing at $2.1 million or 0.33% of total loans. During the same timeframe, non-performing assets remained unchanged at $1.9 million and were 0.23% of total assets at June 30, 2022. The Company’s allowance for loan losses was 0.36% of total loans and 120.8% of non-performing loans at June 30, 2022.

Total liabilities increased $44.7 million, or 6.5%, to $734.5 million mainly due to an increase in deposits, reflecting a new $11.0 million municipal relationship and an increase in borrowings. Total deposits increased $13.8 million, or 2.3%, to $611.3 million at June 30, 2022 from $597.5 million at December 31, 2021. The increase in deposits reflected an increase in interest-bearing deposits of $13.7 million, or 2.5%, to $571.8 million as of June 30, 2022 from $558.2 million at December 31, 2021 and an increase in non-interest bearing deposits of $125,000, or 0.3%, to $39.4 million as of June 30, 2022 from $39.3 million as of December 31, 2021. Federal Home Loan Bank advances increased $30.2 million, or 35.5%, due to new advances for loan funding.

Stockholders’ equity decreased $7.1 million to $140.5 million, due to increased accumulated other comprehensive loss for securities for available for sale of $6.5 million and the repurchase of 215,948 shares of stock during the quarter at a cost of $2.4 million, offset by net income of $3.0 million for the six months ended June 30, 2022. At June 30, 2022, the Company’s ratio of average stockholders’ equity-to-total assets was 17.08%, compared to 17.43% at June 30, 2021.

About Bogota Financial Corp.

Bogota Financial Corp. is a Maryland corporation organized as the mid-tier holding company of Bogota Savings Bank and is the majority-owned subsidiary of Bogota Financial, MHC. Bogota Savings Bank is a New Jersey chartered stock savings bank that has served the banking needs of its customers in northern and central New Jersey since 1893. It operates from six offices located in Bogota, Hasbrouck Heights, Newark, Oak Ridge, Parsippany and Teaneck, New Jersey and operates a loan production office in Spring Lake, New Jersey.

Forward-Looking Statements

This press release contains certain forward-looking statements about the Company and the Bank. Forward-looking statements include statements regarding anticipated future events and can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as “believe,” “expect,” “anticipate,” “estimate,” and “intend” or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” Forward-looking statements, by their nature, are subject to risks and uncertainties. Certain factors that could cause actual results to differ materially from expected results include increased competitive pressures, changes in the interest rate environment, inflation, general economic conditions or conditions within the securities markets, changes in the quality of our loan and security portfolios, increases in non-performing and classified loans, and legislative, accounting and regulatory changes that could adversely affect the business in which the Company and the Bank are engaged.

In addition, the COVID-19 pandemic has had, and may continue to have, an adverse impact on the Company, its clients and the communities it serves. Given its ongoing and dynamic nature, it is difficult to predict the full impact of the COVID-19 pandemic on the Company’s business.

The Company undertakes no obligation to revise these forward-looking statements or to reflect events or circumstances after the date of this press release.

BOGOTA FINANCIAL CORP.

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

 

 

 

As of

 

 

As of

 

 

 

June 30, 2022

 

 

December 31, 2021

 

Assets

 

(unaudited)

 

 

 

 

Cash and due from banks

 

$

6,781,706

 

 

$

14,446,792

 

Interest-bearing deposits in other banks

 

 

822,524

 

 

 

90,621,993

 

Cash and cash equivalents

 

 

7,604,230

 

 

 

105,068,785

 

Securities available for sale

 

 

97,507,693

 

 

 

41,838,798

 

Securities held to maturity (fair value of $79,858,396 and $74,081,059, respectively)

 

 

86,432,340

 

 

 

74,053,099

 

Loans held for sale

 

 

360,000

 

 

 

1,152,500

 

Loans, net of allowance of $2,253,174 and $2,153,174, respectively

 

 

630,810,380

 

 

 

570,209,669

 

Premises and equipment, net

 

 

8,006,717

 

 

 

8,127,979

 

Federal Home Loan Bank (FHLB) stock and other restricted securities

 

 

6,076,700

 

 

 

4,851,300

 

Accrued interest receivable

 

 

3,007,407

 

 

 

2,712,605

 

Core deposit intangibles

 

 

300,827

 

 

 

336,364

 

Bank-owned life insurance

 

 

29,836,866

 

 

 

24,524,122

 

Other assets

 

 

5,001,976

 

 

 

4,486,366

 

Total Assets

 

$

874,945,136

 

 

$

837,361,587

 

Liabilities and Equity

 

 

 

 

 

 

Non-interest bearing deposits

 

$

39,442,245

 

 

$

39,317,500

 

Interest bearing deposits

 

 

571,847,021

 

 

 

558,162,278

 

Total Deposits

 

 

611,289,266

 

 

 

597,479,778

 

FHLB advances

 

 

115,278,743

 

 

 

85,051,736

 

Advance payments by borrowers for taxes and insurance

 

 

3,431,613

 

 

 

2,856,120

 

Other liabilities

 

 

4,484,720

 

 

 

4,397,742

 

Total liabilities

 

 

734,484,342

 

 

 

689,785,376

 

 

 

 

 

 

 

 

Stockholders’ Equity

 

 

 

 

 

 

Preferred stock $0.01 par value 1,000,000 shares authorized, none issued and outstanding at June 30, 2022 and December 31, 2021

 

 

 

 

 

 

Common stock $0.01 par value, 30,000,000 shares authorized, 14,207,862 issued and outstanding at June 30, 2022 and 14,605,809 at December 31, 2021

 

 

142,078

 

 

 

146,057

 

Additional paid-in capital

 

 

64,401,403

 

 

 

68,247,204

 

Retained earnings

 

 

87,922,716

 

 

 

84,879,812

 

Unearned ESOP shares (449,977 shares at June 30, 2022 and 463,239 shares at December 31, 2021)

 

 

(5,273,604

)

 

 

(5,424,206

)

Accumulated other comprehensive loss

 

 

(6,731,799

)

 

 

(272,656

)

Total stockholders’ equity

 

 

140,460,794

 

 

 

147,576,211

 

Total liabilities and stockholders’ equity

 

$

874,945,136

 

 

$

837,361,587

 

BOGOTA FINANCIAL CORP.

CONSOLIDATED STATEMENTS OF INCOME

(unaudited)

 

 

 

Three months ended

June 30,

 

 

Six months ended

June 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Interest income

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

$

5,848,522

 

 

$

5,684,881

 

 

$

11,385,602

 

 

$

11,149,842

 

Securities

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

932,714

 

 

 

388,604

 

 

 

1,569,835

 

 

 

1,062,151

 

Tax-exempt

 

 

46,282

 

 

 

12,798

 

 

 

67,278

 

 

 

25,383

 

Other interest-earning assets

 

 

83,682

 

 

 

115,256

 

 

 

167,495

 

 

 

238,260

 

Total interest income

 

 

6,911,200

 

 

 

6,201,539

 

 

 

13,190,210

 

 

 

12,475,636

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

849,808

 

 

 

1,050,546

 

 

 

1,675,992

 

 

 

2,314,228

 

FHLB advances

 

 

356,203

 

 

 

376,508

 

 

 

686,036

 

 

 

807,633

 

Total interest expense

 

 

1,206,011

 

 

 

1,427,054

 

 

 

2,362,028

 

 

 

3,121,861

 

Net interest income

 

 

5,705,189

 

 

 

4,774,485

 

 

 

10,828,182

 

 

 

9,353,775

 

Provision (credit) for loan losses

 

 

100,000

 

 

 

(54,000

)

 

 

100,000

 

 

 

(113,000

)

Net interest income after provision for loan losses

 

 

5,605,189

 

 

 

4,828,485

 

 

 

10,728,182

 

 

 

9,466,775

 

Non-interest income

 

 

 

 

 

 

 

 

 

 

 

 

Fees and service charges

 

 

50,478

 

 

 

68,576

 

 

 

89,796

 

 

 

121,103

 

(Loss) gain on sale of loans

 

 

(217

)

 

 

284,065

 

 

 

86,913

 

 

 

520,102

 

Bargain purchase gain

 

 

 

 

 

 

 

 

 

 

 

1,933,397

 

Bank-owned life insurance

 

 

169,449

 

 

 

145,167

 

 

 

325,442

 

 

 

234,833

 

Other

 

 

34,007

 

 

 

35,480

 

 

 

95,989

 

 

 

42,459

 

Total non-interest income

 

 

253,717

 

 

 

533,288

 

 

 

598,140

 

 

 

2,851,894

 

Non-interest expense

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

2,098,897

 

 

 

2,035,467

 

 

 

4,162,244

 

 

 

3,574,387

 

Occupancy and equipment

 

 

342,381

 

 

 

294,694

 

 

 

686,810

 

 

 

561,173

 

FDIC insurance assessment

 

 

54,000

 

 

 

69,300

 

 

 

108,000

 

 

 

114,300

 

Data processing

 

 

330,840

 

 

 

312,527

 

 

 

609,187

 

 

 

520,836

 

Advertising

 

 

91,145

 

 

 

60,000

 

 

 

212,290

 

 

 

120,000

 

Director fees

 

 

203,534

 

 

 

216,880

 

 

 

418,325

 

 

 

415,119

 

Professional fees

 

 

151,490

 

 

 

208,849

 

 

 

295,753

 

 

 

467,766

 

Merger fees

 

 

 

 

 

73,932

 

 

 

 

 

 

392,197

 

Core conversion costs

 

 

 

 

 

 

 

 

 

 

 

360,000

 

Other

 

 

321,585

 

 

 

305,484

 

 

 

642,538

 

 

 

483,801

 

Total non-interest expense

 

 

3,593,872

 

 

 

3,577,133

 

 

 

7,135,147

 

 

 

7,009,579

 

Income before income taxes

 

 

2,265,034

 

 

 

1,784,640

 

 

 

4,191,175

 

 

 

5,309,090

 

Income tax expense

 

 

623,027

 

 

 

345,916

 

 

 

1,148,271

 

 

 

864,059

 

Net income

 

$

1,642,007

 

 

$

1,438,724

 

 

$

3,042,904

 

 

$

4,445,031

 

Earnings per Share - basic

 

$

0.12

 

 

$

0.10

 

 

$

0.22

 

 

$

0.33

 

Earnings per Share - diluted

 

$

0.12

 

 

$

0.10

 

 

$

0.22

 

 

$

0.33

 

Weighted average shares outstanding - basic

 

 

13,662,222

 

 

 

13,945,423

 

 

 

13,760,002

 

 

 

13,528,822

 

Weighted average shares outstanding - diluted

 

 

13,701,674

 

 

 

13,945,423

 

 

 

13,800,168

 

 

 

13,528,822

 

BOGOTA FINANCIAL CORP.

SELECTED RATIOS

(unaudited)

 

 

 

 

 

 

 

At or For the Three Months

Ended June 30,

 

 

At or For the Six Months

Ended June 30,

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Performance Ratios (1):

 

 

 

 

 

 

 

 

 

 

 

Return on average assets (2)

 

0.95

%

 

 

0.70

%

 

 

0.73

%

 

 

1.12

%

Return on average equity (3)

 

5.56

%

 

 

4.00

%

 

 

4.26

%

 

 

6.46

%

Interest rate spread (4)

 

2.73

%

 

 

2.28

%

 

 

2.61

%

 

 

2.27

%

Net interest margin (5)

 

2.85

%

 

 

2.44

%

 

 

2.75

%

 

 

2.46

%

Efficiency ratio (6)

 

60.31

%

 

 

67.39

%

 

 

62.44

%

 

 

57.43

%

Average interest-earning assets to average interest-bearing liabilities

 

120.42

%

 

 

122.55

%

 

 

121.36

%

 

 

122.40

%

Net loans to deposits

 

103.19

%

 

 

102.56

%

 

 

103.19

%

 

 

102.56

%

Equity to assets (7)

 

16.05

%

 

 

17.43

%

 

 

16.05

%

 

 

17.43

%

Capital Ratios:

 

 

 

 

 

 

 

 

 

 

 

Tier 1 capital to average assets

 

 

 

 

 

 

 

17.08

%

 

 

17.67

%

Asset Quality Ratios:

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses as a percent of total loans

 

 

 

 

 

 

 

0.36

%

 

 

0.36

%

Allowance for loan losses as a percent of non-performing loans

 

 

 

 

 

 

 

120.83

%

 

 

310.90

%

Net recoveries to average outstanding loans during the period

 

 

 

 

 

 

 

0.00

%

 

 

0.00

%

Non-performing loans as a percent of total loans

 

 

 

 

 

 

 

0.29

%

 

 

0.12

%

Non-performing assets as a percent of total assets

 

 

 

 

 

 

 

0.21

%

 

 

0.08

%

(1) 

 

Performance ratios are annualized.

(2) 

 

Represents net income divided by average total assets.

(3) 

 

Represents net income divided by average stockholders' equity.

(4) 

 

Represents the difference between the weighted average yield on average interest-earning assets and the weighted average cost of average interest-bearing liabilities. Tax exempt income is reported on a tax equivalent basis using a combined federal and state marginal tax rate of 30%.

(5) 

 

Represents net interest income as a percent of average interest-earning assets. Tax exempt income is reported on a tax equivalent basis using a combined federal and state marginal tax rate of 30% for 2022 and 2021.

(6) 

 

Represents non-interest expenses divided by the sum of net interest income and non-interest income.

(7) 

 

Represents average stockholders' equity divided by average total assets.

LOANS

Loans are summarized as follows at June 30, 2022 and December 31, 2021:

 

 

June 30,

2022

 

 

December 31,

2021

 

Real estate:

 

(unaudited)

 

Residential

 

$

379,776,653

 

 

$

319,968,234

 

Commercial and multi-family real estate

 

 

173,619,693

 

 

 

175,375,419

 

Construction

 

 

51,799,501

 

 

 

41,384,687

 

Commercial and industrial

 

 

2,068,871

 

 

 

7,905,524

 

Consumer:

 

 

 

 

 

 

Home equity and other

 

 

25,798,836

 

 

 

27,728,979

 

Total loans

 

 

633,063,554

 

 

 

572,362,843

 

Allowance for loan losses

 

 

(2,253,174

)

 

 

(2,153,174

)

Net loans

 

$

630,810,380

 

 

$

570,209,669

 

The following tables set forth the distribution of total deposit accounts, by account type, at the dates indicated.

 

 

At June 30,

 

 

At December

 

 

 

 

 

 

2022

 

 

2021

 

 

 

 

 

 

Amount

 

 

Percent

 

 

Average

Rate

 

 

Amount

 

 

Percent

 

 

Average

Rate

 

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest bearing demand accounts

 

$

39,627

 

 

 

6.93

%

 

 

%

 

$

39,318

 

 

 

6.58

%

 

 

%

NOW accounts

 

 

76,904

 

 

 

12.58

 

 

 

0.60

 

 

 

69,940

 

 

 

11.71

 

 

0.82

 

Money market accounts

 

 

58,977

 

 

 

9.65

 

 

 

0.34

 

 

 

57,541

 

 

 

9.63

 

 

 

0.34

 

Savings accounts

 

 

67,915

 

 

 

11.11

 

 

0.26

 

 

 

64,285

 

 

 

10.76

 

 

0.26

 

Certificates of deposit

 

 

367,866

 

 

 

60.18

 

 

 

0.86

 

 

 

366,396

 

 

 

61.32

 

 

 

0.74

 

Total

 

$

611,289

 

 

 

100.00

%

 

 

0.65

%

 

$

597,480

 

 

 

100.00

%

 

 

0.61

%

Average Balance Sheets and Related Yields and Rates

The following tables present information regarding average balances of assets and liabilities, the total dollar amounts of interest income and dividends from average interest-earning assets, the total dollar amounts of interest expense on average interest-bearing liabilities, and the resulting annualized average yields and costs. The yields and costs for the periods indicated are derived by dividing income or expense by the average balances of assets or liabilities, respectively, for the periods presented. Average balances have been calculated using daily balances. Nonaccrual loans are included in average balances only. Loan fees are included in interest income on loans and are not material.

 

 

Three Months Ended June 30,

 

 

 

2022

 

 

2021

 

 

 

Average

Balance

 

 

Interest and

Dividends

 

 

Yield/

Cost (3)

 

 

Average

Balance

 

 

Interest and

Dividends

 

 

Yield/

Cost (3)

 

 

 

(Dollars in thousands)

 

Assets:

 

(unaudited)

 

Cash and cash equivalents

 

$

20,723

 

 

$

28

 

 

 

0.55

%

 

$

99,956

 

 

$

41

 

 

 

0.16

%

Loans

 

 

593,705

 

 

 

5,849

 

 

 

3.95

%

 

 

591,134

 

 

 

5,685

 

 

 

3.86

%

Securities

 

 

182,338

 

 

 

979

 

 

 

2.15

%

 

 

86,594

 

 

 

402

 

 

 

1.86

%

Other interest-earning assets

 

 

4,891

 

 

 

55

 

 

 

4.53

%

 

 

5,740

 

 

 

74

 

 

 

5.16

%

Total interest-earning assets

 

 

801,657

 

 

 

6,911

 

 

 

3.46

%

 

 

783,424

 

 

 

6,202

 

 

 

3.17

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest-earning assets

 

 

54,038

 

 

 

 

 

 

 

 

 

41,827

 

 

 

 

 

 

 

Total assets

 

$

855,695

 

 

 

 

 

 

 

 

$

825,251

 

 

 

 

 

 

 

Liabilities and equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW and money market accounts

 

$

158,552

 

 

$

217

 

 

 

0.55

%

 

$

99,267

 

 

$

142

 

 

 

0.59

%

Savings accounts

 

 

66,095

 

 

 

43

 

 

 

0.26

%

 

 

64,341

 

 

 

26

 

 

 

0.16

%

Certificates of deposit

 

 

354,600

 

 

 

590

 

 

 

0.67

%

 

 

375,373

 

 

 

883

 

 

 

0.94

%

Total interest-bearing deposits

 

 

579,247

 

 

 

850

 

 

 

0.59

%

 

 

538,981

 

 

 

1,051

 

 

 

0.78

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal Home Loan Bank advances

 

 

86,445

 

 

 

356

 

 

 

1.59

%

 

 

100,289

 

 

 

376

 

 

 

1.50

%

Total interest-bearing liabilities

 

 

665,692

 

 

 

1,206

 

 

 

0.73

%

 

 

639,270

 

 

 

1,427

 

 

 

0.90

%

Non-interest-bearing deposits

 

 

38,132

 

 

 

 

 

 

 

 

 

26,736

 

 

 

 

 

 

 

Other non-interest-bearing liabilities

 

 

5,556

 

 

 

 

 

 

 

 

 

15,421

 

 

 

 

 

 

 

Total liabilities

 

 

709,380

 

 

 

 

 

 

 

 

 

681,427

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total equity

 

 

146,315

 

 

 

 

 

 

 

 

 

143,824

 

 

 

 

 

 

 

Total liabilities and equity

 

$

855,695

 

 

 

 

 

 

 

 

$

825,251

 

 

 

 

 

 

 

Net interest income

 

 

 

 

$

5,705

 

 

 

 

 

 

 

 

$

4,775

 

 

 

 

Interest rate spread (1)

 

 

 

 

 

 

 

 

2.73

%

 

 

 

 

 

 

 

 

2.28

%

Net interest margin (2)

 

 

 

 

 

 

 

 

2.85

%

 

 

 

 

 

 

 

 

2.44

%

Average interest-earning assets to average interest-bearing liabilities

 

 

120.42

%

 

 

 

 

 

 

 

 

122.55

%

 

 

 

 

 

 

  1. Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.
  2. Net interest margin represents net interest income divided by average total interest-earning assets.
  3. Annualized.

Rate/Volume Analysis

 

 

Six Months Ended June 30,

 

 

 

2022

 

 

2021

 

 

 

Average

Balance

 

 

Interest and

Dividends

 

 

Yield/

Cost (3)

 

 

Average

Balance

 

 

Interest and

Dividends

 

 

Yield/

Cost (3)

 

 

 

(Dollars in thousands)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

45,991

 

 

$

57

 

 

 

0.25

%

 

$

95,564

 

 

$

91

 

 

 

0.19

%

Loans

 

 

582,826

 

 

 

11,386

 

 

 

3.92

%

 

 

585,279

 

 

 

11,150

 

 

 

3.83

%

Securities

 

 

160,688

 

 

 

1,637

 

 

 

2.04

%

 

 

78,485

 

 

 

1,088

 

 

 

2.77

%

Other interest-earning assets

 

 

4,864

 

 

 

110

 

 

 

4.54

%

 

 

5,919

 

 

 

147

 

 

 

4.98

%

Total interest-earning assets

 

 

794,369

 

 

 

13,190

 

 

 

3.33

%

 

 

765,247

 

 

 

12,476

 

 

 

3.27

%

Non-interest-earning assets

 

 

52,429

 

 

 

 

 

 

 

 

 

35,878

 

 

 

 

 

 

 

Total assets

 

$

846,798

 

 

 

 

 

 

 

 

$

801,125

 

 

 

 

 

 

 

Liabilities and equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW and money market accounts

 

$

151,044

 

 

$

437

 

 

 

0.58

%

 

$

94,606

 

 

$

251

 

 

 

0.54

%

Savings accounts

 

 

66,338

 

 

 

86

 

 

 

0.26

%

 

 

53,344

 

 

 

48

 

 

 

0.18

%

Certificates of deposit

 

 

352,824

 

 

 

1,153

 

 

 

0.66

%

 

 

373,355

 

 

 

2,015

 

 

 

1.09

%

Total interest-bearing deposits

 

 

570,206

 

 

 

1,676

 

 

 

0.59

%

 

 

521,305

 

 

 

2,314

 

 

 

0.90

%

Federal Home Loan Bank advances

 

 

84,374

 

 

 

686

 

 

 

1.64

%

 

 

103,897

 

 

 

808

 

 

 

1.57

%

Total interest-bearing liabilities

 

 

654,580

 

 

 

2,362

 

 

 

0.73

%

 

 

625,202

 

 

 

3,122

 

 

 

1.01

%

Non-interest-bearing deposits

 

 

40,545

 

 

 

 

 

 

 

 

 

27,820

 

 

 

 

 

 

 

Other non-interest-bearing liabilities

 

 

6,755

 

 

 

 

 

 

 

 

 

9,268

 

 

 

 

 

 

 

Total liabilities

 

 

701,880

 

 

 

 

 

 

 

 

 

662,290

 

 

 

 

 

 

 

Total equity

 

 

144,918

 

 

 

 

 

 

 

 

 

138,835

 

 

 

 

 

 

 

Total liabilities and equity

 

$

846,798

 

 

 

 

 

 

 

 

$

801,125

 

 

 

 

 

 

 

Net interest income

 

 

 

 

$

10,828

 

 

 

 

 

 

 

 

$

9,354

 

 

 

 

Interest rate spread (1)

 

 

 

 

 

 

 

 

2.61

%

 

 

 

 

 

 

 

 

2.27

%

Net interest margin (2)

 

 

 

 

 

 

 

 

2.75

%

 

 

 

 

 

 

 

 

2.46

%

Average interest-earning assets to average interest-bearing liabilities

 

 

121.36

%

 

 

 

 

 

 

 

 

122.40

%

 

 

 

 

 

 

The following table sets forth the effects of changing rates and volumes on net interest income. The rate column shows the effects attributable to changes in rate (changes in rate multiplied by prior volume). The volume column shows the effects attributable to changes in volume (changes in volume multiplied by prior rate). The net column represents the sum of the prior columns. Changes attributable to changes in both rate and volume that cannot be segregated have been allocated proportionally based on the changes due to rate and the changes due to volume.

 

 

Three Months Ended June 30,

2022 Compared to Three

Months Ended June 30, 2021

 

 

Six Months Ended June 30,

2022 Compared to Six Months

Ended June 30, 2021

 

 

 

Increase (Decrease) Due to

 

 

Increase (Decrease) Due to

 

 

 

Volume

 

 

Rate

 

 

Net

 

 

Volume

 

 

Rate

 

 

Net

 

 

 

(In thousands)

 

Interest income:

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

(195

)

 

$

182

 

 

$

(13

)

 

$

(92

)

 

$

58

 

 

$

(34

)

Loans receivable

 

 

26

 

 

 

138

 

 

 

164

 

 

 

(124

)

 

 

360

 

 

 

236

 

Securities

 

 

506

 

 

 

71

 

 

 

577

 

 

 

1,354

 

 

 

(805

)

 

 

549

 

Other interest earning assets

 

 

(10

)

 

 

(9

)

 

 

(19

)

 

 

(25

)

 

 

(12

)

 

 

(37

)

Total interest-earning assets

 

 

327

 

 

 

382

 

 

 

709

 

 

 

1,113

 

 

 

(399

)

 

 

714

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW and money market accounts

 

 

139

 

 

 

(64

)

 

 

75

 

 

 

165

 

 

 

21

 

 

 

186

 

Savings accounts

 

 

1

 

 

 

16

 

 

 

17

 

 

 

13

 

 

 

25

 

 

 

38

 

Certificates of deposit

 

 

(47

)

 

 

(246

)

 

 

(293

)

 

 

(105

)

 

 

(757

)

 

 

(862

)

Federal Home Loan Bank advances

 

 

(140

)

 

 

120

 

 

 

(20

)

 

 

(216

)

 

 

94

 

 

 

(122

)

Total interest-bearing liabilities

 

 

(47

)

 

 

(174

)

 

 

(221

)

 

 

(143

)

 

 

(617

)

 

 

(760

)

Net increase (decrease) in net interest income

 

$

374

 

 

$

556

 

 

$

930

 

 

$

1,256

 

 

$

218

 

 

$

1,474

 

BOGOTA FINANCIAL CORP.

RECONCILIATION OF GAAP TO NON-GAAP

The Company’s management believes that the presentation of net income on a non-GAAP basis, excluding nonrecurring items, provides useful information for evaluating the Company’s operating results and any related trends that may be affecting the Company’s business. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP.

 

 

 

 

 

 

 

 

 

 

Three months ended June 30, 2021

 

 

Income

Before

Income Taxes

 

 

Provision for

Income Taxes

 

 

Net Income

 

GAAP basis

$

1,784,640

 

 

$

345,916

 

 

$

1,438,724

 

Add: merger-related expenses

$

73,932

 

 

$

-

 

 

$

73,932

 

Less: Bargain purchase gain

$

-

 

 

$

-

 

 

$

-

 

Non-GAAP basis

$

1,858,572

 

 

$

345,916

 

 

$

1,512,656

 

 

 

 

 

 

 

 

 

 

 

Six months ended June 30, 2021

 

 

Income

Before

Income Taxes

 

 

Provision for

Income Taxes

 

 

Net Income

 

GAAP basis

$

5,309,090

 

 

$

864,059

 

 

$

4,445,031

 

Add: merger and acquisition related expenses

 

392,197

 

 

 

 

 

 

392,197

 

Add: Charitable Foundation Contribution

 

 

 

 

 

 

 

 

Less: Bargain purchase gain

 

(1,933,397

)

 

 

 

 

 

(1,933,397

)

Non-GAAP basis

$

3,767,890

 

 

$

864,059

 

 

$

2,903,831

 

 

 

 

 

 

 

 

 

 

 

Six months ended June 30,

 

Return on average assets (annualized):

2022

 

 

2021

 

 

 

 

GAAP

 

0.73

%

 

 

1.12

%

 

 

 

Adjustments

 

0.00

%

 

 

0.38

%

 

 

 

Non-GAAP

 

0.73

%

 

 

0.74

%

 

 

 

Return on average equity (annualized):

 

 

 

 

 

 

 

 

GAAP

 

4.26

%

 

 

6.46

%

 

 

 

Adjustments

 

0.00

%

 

 

2.20

%

 

 

 

Non-GAAP

 

4.26

%

 

 

4.26

%

 

 

 

 

Contacts

Joseph Coccaro – President & CEO, 201-862-0660 ext. 1110

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