Bogota Financial Corp.

What they do

Bogota Financial Corp. is the holding company for Bogota Savings Bank, a New Jersey-chartered savings bank founded in 1893. The bank operates from seven offices and a loan production office in New Jersey, attracting deposits and using them, along with FHLB advances, to originate one-to-four-family residential, commercial real estate, multi-family, consumer, commercial and industrial, and construction loans. It also invests in securities, primarily U.S. government and agency obligations, municipal obligations, corporate bonds, and mortgage-backed securities.

Revenue drivers

• Net interest income — Core earnings from the spread between interest earned on loans and securities and interest paid on deposits and FHLB advances. Net interest income increased $145,000 in Q2 2026 versus Q2 2025, a key driver of the quarter's profit.
• Non-interest income — Includes fees and other income; increased $329,000 in Q2 2026 year-over-year, contributing to the net income improvement.
• Loan portfolio — Net loans were $637.3 million at June 30, 2026, primarily residential mortgages and commercial/multi-family loans, offset by a 1.6% decrease from December 31, 2025.
• Securities portfolio — Securities totaled $140.4 million at June 30, 2026, down 11.2% from year-end 2025, providing interest income and principal repayments.

Recent performance

For the six months ended June 30, 2026, net income was $1.5 million, or $0.12 per basic and diluted share, compared to $955,000, or $0.08 per share, for the same period in 2025. Q2 2026 net income was $748,000, or $0.06 per share, up from $224,000, or $0.02 per share, in Q2 2025. Total assets decreased 3.3% to $875.0 million at June 30, 2026 from $904.9 million at December 31, 2025, driven by declines in cash, securities, and loans. Deposits fell 12.0% to $574.2 million, while FHLB advances increased 51.1% to $141.0 million to fund the deposit outflow. The company reported a net loss in fiscal 2024 of $2.2 million and net income of $2.1 million in fiscal 2025.

Strategy

Management says it is focused on prudent lending that diversifies the portfolio while maintaining solid credit quality. The company plans to expand through the announced agreement to acquire GSL Bank, which would bring a customer base from another longstanding New Jersey institution. It also intends to improve technology to remain competitive and attractive. Balance sheet management to minimize exposure to the rate environment remains a strategic goal. The company is executing a stock repurchase program, with 230,544 shares repurchased at a cost of $2.0 million, to deliver shareholder value.

Risks

• Deposit outflow and funding risk — Total deposits fell 12.0% in H1 2026, requiring increased FHLB advances, which could squeeze net interest margin if borrowing costs rise.
• Interest rate risk — The bank's net interest income and securities portfolio are sensitive to rate movements; lower rates on deposits were partially offset by lower loan yields, and rising rates could increase funding costs.
• Credit risk in loan portfolio — A concentration in residential and commercial real estate loans, particularly in New Jersey, exposes the bank to local economic downturns and property value declines.
• Acquisition integration risk — The pending acquisition of GSL Bank may face regulatory approvals, shareholder votes, or integration challenges that could delay benefits or increase costs.

Outlook

Management expressed optimism about the GSL Bank acquisition, believing it will expand the customer base and provide growth opportunities. They also plan technology improvements to remain competitive. The company aims to continue delivering shareholder value through the stock buyback and core growth, with expectations of improved net income and EPS year over year.