Bogota Financial Corp. (NASDAQ: BSBK) (the “Company”), the
holding company for Bogota Savings Bank (the “Bank”), reported net
income for the three months ended December 31, 2021 of $2.0
million, compared to net income of $1.0 million for the comparable
prior year period. The Company reported net income for the twelve
months ended December 31, 2021 of $7.5 million compared the net
income of $2.1 million for the comparable prior year period. During
the twelve months ended December 31, 2021, the Company recorded a
bargain purchase gain of $1.9 million and merger-related expenses
of $392,000, both associated with the acquisition of Gibraltar
Bank. The Company contributed cash and stock with a value of $2.9
million ($2.1 million after-tax) to the Bogota Charitable
Foundation during the twelve months ended December 31, 2020.
Excluding the bargain purchase gain and the merger-related expenses
in 2021 and the contribution to the charitable foundation in 2020,
net income for the twelve months ended December 31, 2021 and 2020
was $5.9 million and $4.3 million, respectively1.
On January 15, 2020, the Company became the holding company for
the Bank when it completed the reorganization of the Bank into a
two-tier mutual holding company form of organization. In connection
with the reorganization, the Company sold 5,657,735 shares of
common stock at a price of $10 per share, for gross proceeds of
$56.6 million. The Company also contributed 263,150 shares of
common stock and $250,000 in cash to Bogota Savings Bank Charitable
Foundation, Inc., and issued 7,236,640 shares of common stock to
Bogota Financial, MHC, its New Jersey-chartered mutual holding
company.
On February 28, 2021, the Company completed its acquisition of
Gibraltar Bank and, as part of the transaction, issued 1,267,916
shares of its common stock to Bogota Financial, MHC. The conversion
and consolidation of data processing platforms, systems and
customer files was completed in August 2021. The merger added three
branches to the Bank’s network. In the third quarter of 2021, the
Bank opened a new branch in Hasbrouck Heights, New Jersey, which
also include additional offices for staff.
Other Financial Highlights:
- Total assets increased $96.5 million, or 13.0%, to $837.4
million from $740.9 million at December 31, 2020, primarily due to
assets acquired from the Gibraltar Bank acquisition.
- Net loans increased $12.5 million, or 2.2%, to $570.2 million
at December 31, 2021 from $557.7 million at December 31, 2020.
- Total deposits were $597.5 million, increasing $95.5 million,
or 19.0%, as compared to $502.0 million at December 31, 2020,
primarily due to acquiring deposits from the Gibraltar Bank
acquisition.
- Return on average assets was 1.23% for the twelve-month period
ended December 31, 2021 compared to 0.28% for 2020. Without the
bargain purchase gain and merger-related expenses in 2021 and the
charitable foundation contribution in 2020, the return on average
assets would have been 0.98%1 and 0.55%1 for the twelve-month
periods ended December 31, 2021 and 2020, respectively.
- Return on average equity was 7.06% for the twelve-month period
ended December 31, 2021 compared to 1.66% for 2020. Without the
bargain purchase gain and merger-related expenses in 2021 and the
charitable foundation contribution in 2020, the return on average
equity would have been 5.60%2 and 3.25%2 for the twelve months
ended December 31, 2021 and 2020, respectively.
Joseph Coccaro, President and Chief Executive Officer, said,
"During the year we completed the acquisition of Gibraltar Bank
including a successful business system conversion. The Bank opened
its sixth branch location in Hasbrouck Heights to provide banking
services to the community and added additional office space for the
Bank. The new branch was very successful with over $24.0 million in
deposits by year end."
“We are pleased with our continued strategy to expand our loan
portfolio and its positive overall impacts of on our assets and
income. We continue our efforts to expand our market presence,
improve and expand our technology platform and offerings and manage
our interest rate risk.”
Mr. Coccaro further stated, “We are pleased with our results for
the year as our core earnings have shown steady growth despite the
COVID-19 disruption. We continue to enjoy 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
56 basis points year over year. We finished a second round of SBA
PPP loans in 2021 and look forward to continuing to serve our
communities going forward. The economic impact of the COVID-19
pandemic on the Company’s operations was not material during 2021.
Our loan deferrals are down to one residential loan as of December
31, 2021. I am pleased with the achievements during 2021 and I am
confident that in 2022 we will see continued growth.”
Paycheck Protection Program
As a qualified Small Business Administration lender, the Company
was automatically authorized to originate loans under the Paycheck
Protection Program (“PPP”). During 2020, the Company received and
processed 113 PPP applications totaling $10.5 million. The Company
participated in the second round of PPP loans and during 2021, the
Company received and processed 54 PPP applications totaling $6.9
million. The Company had 168 PPP loans outstanding totaling $5.8
million at December 31, 2021
COVID
The Company has provided assistance to individuals and small
business clients directly impacted by the COVID-19 pandemic by
allowing borrowers to modify their loans to defer principal and/or
interest payments. Through December 31, 2020, the Company granted
172 loan modifications totaling $67.9 million. As of December 31,
2021, one residential loan totaling $117,000 was still on
deferral.
Income Statement Analysis
Comparison of Operating Results for the Three Months Ended
December 31, 2021 and December 31, 2020
Net income increased by $987,000, or 94.3%, to $2.0 million for
the three months ended December 31, 2021 from $1.0 million for the
three months ended December 31, 2020. The increase was due to
increases in net interest income of $1.2 million and non-interest
income of $1.2 million offset by an increase in non-interest
expense of $1.3 million.
Interest income on cash and cash equivalents decreased $14,000,
or 27.5%, to $37,000 for the three months ended December 31, 2021
from $51,000 for the three months ended December 31, 2020 due to a
13 basis point decrease in the average yield on cash and cash
equivalents from 0.27% for the three months ended December 31, 2020
to 0.14% for the three months ended December 31, 2021 due to the
lower interest rate environment. The decrease was partially offset
by a $33.1 million increase in the average balance of cash and cash
equivalents to $106.4 million for the three months ended December
31, 2021 from $73.3 million for the three months ended December 31,
2020, reflecting excess liquidity as deposit growth exceeded loan
growth.
Interest income on loans increased $419,000, or 8.2%, to $5.6
million for the three months ended December 31, 2021 from $5.1
million for the three months ended December 31, 2020 due to a 17
basis point increase in the average yield on loans from 3.64% for
the three months ended December 31, 2020 to 3.81% for the three
months ended December 31, 2021 and a $16.0 million increase in the
average balance of loans to $577.7 million for the three months
ended December 31, 2021 from $561.7 million for the three months
ended December 31, 2020. The increase in the average balance of
loans reflected the addition of Gibraltar loans.
Interest income on securities increased $86,000, or 23.3%, to
$459,000 for the three months ended December 31, 2021 from $373,000
for the three months ended December 31, 2020 due to a $30.4 million
increase in the average balance of securities to $98.3 million for
the three months ended December 31, 2021 from $67.9 million for the
three months ended December 31, 2020, reflecting the purchase of
investments with excess liquidity as deposit growth exceeded loan
growth, offset by a 32 basis point decrease in the average yield
from 2.19% for the three months ended December 31, 2020 to 1.87%
for the three months ended December 31, 2021.
Interest expense on interest-bearing deposits decreased
$652,000, or 41.6%, to $916,000 for the three months ended December
31, 2021 from $1.6 million for the three months ended December 31,
2020. The decrease was due primarily to a 65 basis point decrease
in the average cost of interest-bearing deposits to 0.65% for the
three months ended December 31, 2021 from 1.30% for the three
months ended December 31, 2020. The decrease in the average cost of
deposits was due to the lower interest rate environment and a
larger increase in the average balance of lower-cost transaction
accounts than the average balance of higher cost certificates of
deposit. This decrease was offset by a $80.8 million increase in
the average balance of deposits to $557.6 million for the three
months ended December 31, 2021 from $476.8 million for the three
months ended December 31, 2020.
Interest expense on Federal Home Loan Bank borrowings decreased
$96,000, or 21.9%, from $438,000 for the three months ended
December 31, 2020 to $342,000 for the three months ended December
31, 2021. The decrease was due to a decrease in the average cost of
borrowings of 15 basis points to 1.56% for the three months ended
December 31, 2021 from 1.71% for the three months ended December
31, 2020 due to the lower interest rate environment and a decrease
in the average balance of borrowings of $14.7 million to $86.9
million for the three months ended December 31, 2021 from $101.6
million for the three months ended December 31, 2020.
Net interest income increased $1.2 million, or 33.4%, to $4.9
million for the three months ended December 31, 2021 from $3.6
million for the three months ended December 31, 2020. The increase
reflected a 50 basis point increase in our net interest rate spread
to 2.30% for the three months ended December 31, 2021 from 1.80%
for the three months ended December 31, 2020. Our net interest
margin increased 41 basis points to 2.44% for the three months
ended December 31, 2021 from 2.03% for the three months ended
December 31, 2020.
We recorded no provision for loan losses the three months ended
December 31, 2021 and recorded a $75,000 credit for the three-month
period ended December 31, 2020. Lower balances in residential
loans, a more positive economic environment and continued strong
asset quality metrics were the reasons for the absence of a
provision for the three months ended December 31, 2021. The Bank
continues to have a low level of delinquent and non-accrual loans
in the portfolio, as well as no charge-offs. Non-performing assets
were $1.9 million, or 0.23% of total assets, at December 31, 2021.
The allowance for loan losses was $2.2 million, or 0.38% of loans
outstanding and 113.9% of nonperforming loans, at December 31,
2021.
Non-interest income increased by $1.2 million, or 1,067.4%, to
$1.3 million for the three months ended December 31, 2021 from
$109,000 for the three months ended December 31, 2020. The increase
was due to $1.0 million higher income on bank owned life insurance
due to the purchase of $8.0 million of bank-owned life insurance
and $891,000 in death benefit proceeds on bank owned life
insurance, and a $139,000 gain on sale of $4.7 million residential
loans during the three months ended December 31, 2021.
For the three months ended December 31, 2021, non-interest
expense increased $1.3 million to $3.7 million, over the comparable
2020 period. Salaries and employee benefits increased $798,000, or
59.5%, attributable to adding the new Gibraltar employees. Data
processing expense increased $38,000, or 17.1%, due to higher data
processing expense from the merger. Professional fees decreased
$84,000, or 37.6%, due in part to lower legal and merger expenses.
The increase of other general operating expenses was mainly due to
increase occupancy costs for the acquired Gibraltar Bank branches
and the new branch location in Hasbrouck Heights, which opened in
August.
Comparison of Operating Results for the Twelve Months Ended
December 31, 2021 and December 31, 2020
Net income increased by $5.5 million to $7.5 million for the
twelve months ended December 31, 2021 from $2.1 million for the
twelve months ended December 31, 2020. The increase was due to
increases in net interest income of $5.7 million, a decrease in the
provision for loan losses of $288,000 and an increase in
non-interest income of $3.4 million, offset by increases in
non-interest expense of $2.5 million and income tax expense of $1.4
million.
Interest income on cash and cash equivalents decreased $298,000,
or 66.4%, to $151,000 for the twelve months ended December 31, 2021
from $449,000 for the twelve months ended December 31, 2020 due to
a 50 basis point decrease in the average yield on cash and cash
equivalents from 0.65% for the twelve months ended December 31,
2020 to 0.15% for the twelve months ended December 31, 2021 due to
the lower interest rate environment. The decrease was offset by a
$31.3 million increase in the average balance of cash and cash
equivalents to $99.8 million for the twelve months ended December
31, 2021 from $68.6 million for the twelve months ended December
31, 2020, reflecting excess liquidity as deposit growth exceeded
loan growth.
Interest income on loans increased $1.8 million, or 8.6%, to
$22.7 million for the twelve months ended December 31, 2021 from
$20.9 million for the twelve months ended December 31, 2020 due to
a $19.6 million increase in the average balance of loans to $583.4
million for the twelve months ended December 31, 2021 from $563.8
million for the twelve months ended December 31, 2020. The increase
in the average balance of loans reflected our continued efforts to
increase our loan originations and the loans acquired from
Gibraltar Bank. The increase was supplemented by a 19 basis point
increase in the average yield on loans from 3.70% for the twelve
months ended December 31, 2020 to 3.89% for the twelve months ended
December 31, 2021.
Interest income on securities increased $356,000, or 22.0%, to
$2.0 million for the twelve months ended December 31, 2021 from
$1.6 million for the twelve months ended December 31, 2020 due to a
$20.2 million increase in the average balance of securities to
$86.0 million for the twelve months ended December 31, 2021 from
$65.9 million for the twelve months ended December 31, 2020 offset
by a 16 basis point decrease in the average yield from 2.45% for
the twelve months ended December 31, 2020 to 2.29% for the twelve
months ended December 31, 2021, reflecting the purchase of
investment securities at lower interest rates with excess liquidity
as deposit growth exceeded loan growth.
Interest expense on interest-bearing deposits decreased $3.5
million, or 45.0%, to $4.3 million for the twelve months ended
December 31, 2021 from $7.8 million for the twelve months ended
December 31, 2020. The decrease was due primarily to 85 basis point
decrease in the average cost of interest-bearing deposits to 0.79%
for the twelve months ended December 31, 2021 from 1.64% for the
twelve months ended December 31, 2020. The decrease in the average
cost of deposits was due to the lower interest rate environment and
a larger increase in the average balance of lower-cost transaction
accounts than the average balance of higher cost certificates of
deposit. This decrease was offset by a $64.6 million increase in
the average balance of deposits to $537.3 million for the twelve
months ended December 31, 2021 from $472.7 million for the twelve
months ended December 31, 2020.
Interest expense on Federal Home Loan Bank borrowings decreased
$397,000, or 20.7%, from $1.9 million for the twelve months ended
December 31, 2020 to $1.5 million for the twelve months ended
December 31, 2021. The decrease was primarily due to the lower
interest rate environment, as the average cost of borrowings
decreased 27 basis point to 1.56% for the twelve months ended
December 31, 2021 from 1.83% for the twelve months ended December
31, 2020.
Net interest income increased $5.7 million, or 23.6%, to $19.3
million for the twelve months ended December 31, 2021 from $13.6
million for the twelve months ended December 31, 2020. The increase
reflected a 70 basis point increase in our net interest rate spread
to 2.33% for the twelve months ended December 31, 2021 from 1.63%
for the twelve months ended December 31, 2020. Our net interest
margin increased 57 basis points to 2.50% for the twelve months
ended December 31, 2021 from 1.93% for the twelve months ended
December 31, 2020.
We recorded a credit for loan losses of $88,000 for the twelve
months ended December 31, 2021 compared to a provision for loan
losses of $200,000 for the twelve months ended December 31, 2020.
Lower balances in residential loans, a more positive economic
environment and continued strong asset quality metrics were the
reasons for the credit during the twelve months ended December 31,
2020. 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 increased by $3.4 million or 306.4%, to $4.5
million for the twelve months ended December 31, 2021 from $1.1
million for the twelve months ended December 31, 2020. The increase
was due to $2.0 million bargain purchase gain for the Gibraltar
merger, a $786,000 gain on sale of $26.6 million residential loans
sold during the twelve months ended December 31, 2021, and $409,000
higher income on bank owned life insurance due to the purchase of
$8.0 million of bank-owned life insurance and collection of
$891,000 death benefits proceeds on bank owned life insurance.
For the twelve months ended December 31, 2021, non-interest
expense increased $2.5 million to $14.5 million, over 2020.
Salaries and employee benefits increased $2.6 million, or 50.9%,
attributable to adding the new Gibraltar employees, additional
branch offices and normal merit increases. Data processing expense
increased $322,000, or 45.1%, due to higher data processing expense
from maintaining two core systems until the data processing
conversion was completed in August. Professional fees decreased
$130,000, or 15.0%, due to lower legal and consulting fees. Merger
expenses were $392,000 in 2021 associated with the Gibraltar Bank
acquisition. The increase of other general operating expenses was
mainly due to increased occupancy costs for the acquired Gibraltar
Bank branches and the branch location in Hasbrouck Heights, which
opened in August. During the twelve months ended December 31, 2020,
the Bank made a $2.9 million contribution to the Bogota Charitable
Foundation and there was no contribution for the twelve months
ended December 31, 2021.
Balance Sheet Analysis
Total assets were $837.4 million at December 31, 2021,
representing an increase of $96.5 million, or 13.0%, from December
31, 2020. Cash and cash equivalents from banks increased $24.7
million during the period primarily due to $19.6 million in
repayments in residential loans and $19.3 million in cash from the
Gibraltar Bank acquisition. Net loans increased $12.5 million, or
2.2%, due to new production of $92.6 million, consisting of a
relatively equal mix of residential real estate loans and
commercial real estate loans and $77.0 million of loans acquired
from Gibraltar Bank, which was offset by $157.1 million in
repayments. Securities held to maturity increased $16.5 million due
to the purchase of corporate bonds and mortgage-backed securities
with excess cash. Securities available for sale increased $30.0
million due to the purchase of mortgage backed securities and
corporate bonds with excess cash. Bank-owned life insurance
increased $7.6 million due to a new purchase of $8.0 million of
Bank-owned life insurance offset by death proceeds.
Delinquent loans increased $780,000, or 87.9%, during the
twelve-month period ended December 31, 2021, finishing at $1.7
million or 0.3% of total loans. During the same timeframe,
non-performing assets increased $1.9 million, or 173.1%, to $1.9
million due to the addition of three loans acquired in the
Gibraltar Bank acquisition and were 0.2% of total assets at
December 31, 2021. The Company’s allowance for loan losses was
0.38% of total loans and 113.9% of non-performing loans at December
31, 2021.
Total liabilities increased $77.3 million, or 12.6%, to $689.8
million mainly due to deposits acquired from Gibraltar Bank, offset
by a decrease in borrowings. Total deposits increased $95.5
million, or 19.0%, to $597.5 million at December 31, 2021 from
$502.0 million at December 31, 2020. The increase in deposits
reflected an increase in interest-bearing deposits of $83.3
million, or 17.5%, to $558.2 million as of December 31, 2021 from
$474.9 million at December 31, 2020 and an increase in non-interest
bearing deposits of $12.3 million, or 45.3%, to $39.3 million as of
December 31, 2021 from $27.1 million as of December 31, 2020. The
increases are primarily due to the $81.4 million of deposits
acquired from Gibraltar Bank. Federal Home Loan Bank advances
decreased $19.2 million, or 18.4%, as the $10.0 million of
borrowings acquired from Gibraltar Bank were offset by $24.2
million of borrowings that matured.
Stockholders’ equity increased $19.1 million to $147.6 million,
as a result of $11.5 million of capital acquired from Gibraltar
Bank and net income of $7.5 million for the twelve months ended
December 31, 2021. At December 31, 2021, the Company’s ratio of
average stockholders’ equity-to-total assets was 17.55%, compared
to 16.97% at December 31, 2020.
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, 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.
Further, 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 extent of such impact will depend on future
developments, which are highly uncertain, including if the
coronavirus can continue to be controlled and abated. As the result
of the COVID-19 pandemic and the related adverse local and national
economic consequences, the Company could be subject to any of the
following risks, any of which could have a material, adverse effect
on the Company’s business, financial condition, liquidity, and
results of operations: demand for the Company’s products and
services may decline, making it difficult to grow assets and
income; if the economy worsens, loan delinquencies, problem assets,
and foreclosures may increase, resulting in increased charges and
reduced income; collateral for loans, especially real estate, may
decline in value, which could cause loan losses to increase; the
Company’s allowance for loan losses may have to be increased if
borrowers experience financial difficulties, which will adversely
affect the Company’s net income; the net worth and liquidity of
loan guarantors may decline, impairing their ability to honor
commitments to us; the Company’s cyber security risks are increased
as the result of an increase in the number of employees working
remotely; and FDIC premiums may increase if the agency experience
additional resolution costs.
The Company undertakes no obligation to revise these
forward-looking statements or to reflect events or circumstances
after the date of this press release.
[1] This number represents a non-GAAP financial measure. Please
see “Reconciliation of GAAP to Non-GAAP” contained at the end of
this release. [2] This number represents a non-GAAP financial
measure. Please see “Reconciliation of GAAP to Non-GAAP” contained
at the end of this release.
BOGOTA FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
As of
As of
December 31, 2021
December 31, 2020
Assets
(unaudited)
Cash and due from banks
$
14,446,792
$
5,957,564
Interest-bearing deposits in other
banks
90,621,993
74,428,175
Cash and cash equivalents
105,068,785
80,385,739
Securities available for sale
41,838,798
11,870,508
Securities held to maturity (fair value of
$74,081,059 and $58,872,451, respectively)
74,053,099
57,504,443
Loans held for sale
1,152,500
—
Loans, net of allowance of $2,153,174 and
$2,241,174, respectively
570,209,669
557,690,853
Premises and equipment, net
8,127,979
5,671,097
Federal Home Loan Bank (FHLB) stock and
other restricted securities
4,851,300
5,858,100
Accrued interest receivable
2,712,605
2,855,425
Core deposit intangibles
336,364
—
Bank-owned life insurance
24,524,122
16,915,637
Other assets
4,486,366
2,153,076
Total Assets
$
837,361,587
$
740,904,878
Liabilities and Equity
Non-interest bearing deposits
$
39,317,500
$
27,061,629
Interest bearing deposits
558,162,278
474,911,402
Total Deposits
597,479,778
501,973,031
FHLB advances
85,051,736
104,290,920
Advance payments by borrowers for taxes
and insurance
2,916,152
2,560,089
Other liabilities
4,337,710
3,612,762
Total liabilities
689,785,376
612,436,802
Commitments and Contingencies
—
—
Stockholders’ Equity
Preferred stock $0.01 par value 1,000,000
shares authorized, none issued and outstanding at December 31, 2021
and December 31, 2020
—
—
Common stock $0.01 par value, 30,000,000
shares authorized, 14,605,700 issued and outstanding at December
31, 2021 and 13,157,525 at December 31, 2020
146,057
131,575
Additional paid-in capital
68,247,204
56,975,187
Retained earnings
84,879,812
77,359,737
Unearned ESOP shares (463,239 shares at
December 31, 2021 and 489,983 shares at December 31, 2020)
(5,424,206
)
(5,725,410
)
Accumulated other comprehensive loss
(272,656
)
(273,013
)
Total stockholders’ equity
147,576,211
128,468,076
Total liabilities and stockholders’
equity
$
837,361,587
$
740,904,878
BOGOTA FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
Three months ended December
31,
Year ended December
31,
2021
2020
2021
2020
Interest income
Loans
$
5,555,242
$
5,136,396
$
22,672,097
$
20,870,655
Securities
Taxable
439,128
359,665
1,912,146
1,563,721
Tax-exempt
20,094
12,836
58,888
50,853
Other interest-earning assets
91,936
130,541
424,539
791,033
Total interest income
6,106,400
5,639,438
25,067,670
23,276,262
Interest expense
Deposits
916,212
1,568,182
4,271,109
7,762,642
FHLB advances
342,317
437,559
1,519,302
1,915,991
Total interest expense
1,258,529
2,005,741
5,790,411
9,678,633
Net interest income
4,847,871
3,633,697
19,277,259
13,597,629
Provision (credit) for loan losses
—
(75,000
)
(88,000
)
200,000
Net interest income after provision
(credit) for loan losses
4,847,871
3,708,697
19,365,259
13,397,629
Non-interest income
Fees and service charges
37,222
13,495
136,211
58,946
Gain on sale of loans
139,211
—
786,424
—
Bargain purchase gain
17,573
—
1,950,970
—
Bank-owned life insurance
1,044,628
88,543
1,436,453
1,027,703
Other
28,572
6,516
183,454
18,986
Total non-interest income
1,267,206
108,554
4,493,512
1,105,635
Non-interest expense
Salaries and employee benefits
2,140,286
1,341,846
7,743,694
5,132,372
Occupancy and equipment
361,529
163,345
1,261,306
658,854
FDIC insurance assessment
54,000
45,000
217,300
161,000
Data processing
258,414
220,670
1,036,203
714,109
Advertising
96,665
45,959
276,665
177,773
Director fees
250,877
186,011
873,008
733,102
Professional fees
138,787
222,321
735,067
865,209
Merger fees
—
—
392,197
—
Core conversion costs
—
—
730,000
—
Contribution to charitable foundation
—
—
—
2,881,500
Other
377,275
146,256
1,198,081
673,815
Total non-interest expense
3,677,833
2,371,408
14,463,521
11,997,734
Income before income taxes
2,437,244
1,445,843
9,395,250
2,505,530
Income tax expense
404,372
399,524
1,875,175
437,305
Net income
$
2,032,872
$
1,046,319
$
7,520,075
$
2,068,225
Earnings per Share - basic
$
0.15
$
0.08
$
0.55
$
0.09
Earnings per Share - diluted
$
0.14
$
0.08
$
0.52
$
0.09
Weighted average shares outstanding
13,900,769
12,664,194
13,725,884
12,170,610
Weighted average shares outstanding -
diluted
14,222,841
12,664,194
14,350,788
12,170,610
BOGOTA FINANCIAL CORP.
SELECTED RATIOS
(unaudited)
(unaudited)
At or For the Three Months
Ended December 31,
At or For the Twelve Months
Ended December 31,
2021
2020
2021
2020
Performance Ratios (1):
Return on average assets (2)
0.97
%
0.57
%
1.23
%
0.28
%
Return on average equity (3)
5.54
%
3.27
%
7.06
%
1.66
%
Interest rate spread (4)
2.30
%
1.80
%
2.33
%
1.63
%
Net interest margin (5)
2.44
%
2.03
%
2.50
%
1.93
%
Efficiency ratio (6)
60.14
%
63.37
%
60.85
%
81.60
%
Average interest-earning assets to average
interest-bearing liabilities
122.19
%
122.54
%
122.40
%
122.01
%
Net loans to deposits
95.44
%
111.10
%
95.44
%
111.10
%
Equity to assets (7)
17.55
%
16.97
%
17.55
%
16.97
%
Capital Ratios:
Tier 1 capital to average assets
17.88
%
17.25
%
Asset Quality Ratios:
Allowance for loan losses as a percent of
total loans
0.38
%
0.40
%
Allowance for loan losses as a percent of
non-performing loans
113.85
%
323.60
%
Net recoveries to average outstanding
loans during the period
0.00
%
0.00
%
Non-performing loans as a percent of total
loans
0.33
%
0.12
%
Non-performing assets as a percent of
total assets
0.23
%
0.09
%
(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 2021 and 2020. (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 (unaudited) Loans are summarized as follows at
December 31, 2021 and December 31, 2020:
December 31, 2021
December 31, 2020
Real estate:
Residential
$
319,968,234
$
340,000,989
Commercial and multi-family real
estate
175,375,419
171,634,451
Construction
41,384,687
9,930,959
Commercial and industrial
7,905,524
13,652,248
Consumer:
Home equity and other
27,728,979
24,713,380
Total loans
572,362,843
559,932,027
Allowance for loan losses
(2,153,174
)
(2,241,174
)
Net loans
$
570,209,669
$
557,690,853
The following tables set forth the distribution of total deposit
accounts, by account type, at the dates indicated.
At December 31,
At December
2021
2020
Amount
Percent
Average Rate
Amount
Percent
Average Rate
(Dollars in thousands)
(unaudited)
Noninterest bearing demand accounts
$
39,318
6.58
%
—
%
$
27,062
5.39
%
—
%
NOW accounts
69,940
11.71
0.82
28,672
5.71
0.74
Money market accounts
57,541
9.63
0.34
58,114
11.58
0.47
Savings accounts
64,285
10.76
0.26
31,761
6.33
1.25
Certificates of deposit
366,396
61.32
0.74
356,364
70.99
1.33
Total
$
597,480
100.00
%
0.61
%
$
501,973
100.00
%
1.06
%
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 December
31,
2021
2020
Average Balance
Interest and Dividends
Yield/ Cost (3)
Average Balance
Interest and Dividends
Yield/ Cost (3)
(Dollars in thousands)
Assets:
Cash and cash equivalents
$
106,400
$
37
0.14
%
$
73,312
$
51
0.27
%
Loans
577,699
5,555
3.81
%
561,710
5,136
3.64
%
Securities
98,307
459
1.87
%
67,931
373
2.19
%
Other interest-earning assets
5,077
55
4.33
%
5,803
80
5.51
%
Total interest-earning assets
787,483
6,106
3.08
%
708,756
5,640
3.17
%
Non-interest-earning assets
48,406
30,293
Total assets
$
835,889
$
739,049
Liabilities and equity:
NOW and money market accounts
$
121,764
$
198
0.65
%
$
86,449
$
144
0.66
%
Savings accounts
64,363
41
0.25
%
30,708
20
0.26
%
Certificates of deposit
371,490
677
0.72
%
359,614
1,404
1.55
%
Total interest-bearing deposits
557,617
916
0.65
%
476,771
1,568
1.30
%
Federal Home Loan Bank advances
86,855
342
1.56
%
101,601
438
1.71
%
Total interest-bearing liabilities
644,472
1,258
0.77
%
578,372
2,006
1.38
%
Non-interest-bearing deposits
39,703
26,637
Other non-interest-bearing liabilities
5,030
6,100
Total liabilities
689,205
611,109
Total equity
146,684
127,940
Total liabilities and equity
$
835,889
$
739,049
Net interest income
$
4,848
$
3,634
Interest rate spread (1)
2.30
%
1.80
%
Net interest margin (2)
2.44
%
2.03
%
Average interest-earning assets to average
interest-bearing liabilities
122.19
%
122.54
%
- Interest rate spread represents the difference between the
weighted average yield on interest-earning assets and the weighted
average cost of interest-bearing liabilities.
- Net interest margin represents net interest income divided by
average total interest-earning assets.
- Annualized.
Twelve Months Ended December
31,
2021
2020
Average Balance
Interest and Dividends
Yield/ Cost (3)
Average Balance
Interest and Dividends
Yield/ Cost (3)
(Dollars in thousands)
Assets:
Cash and cash equivalents
$
99,842
$
151
0.15
%
$
68,553
$
449
0.65
%
Loans
583,362
22,672
3.89
%
563,769
20,871
3.70
%
Securities
86,035
1,971
2.29
%
65,871
1,615
2.45
%
Other interest-earning assets
5,606
273
4.87
%
6,008
341
5.68
%
Total interest-earning assets
774,845
25,067
3.24
%
704,201
23,276
3.31
%
Non-interest-earning assets
42,252
28,804
Total assets
$
817,097
$
733,005
Liabilities and equity:
NOW and money market accounts
$
104,945
$
625
0.60
%
$
59,984
$
530
0.88
%
Savings accounts
58,880
127
0.22
%
30,005
77
0.26
%
Certificates of deposit
373,490
3,519
0.94
%
382,696
7,155
1.87
%
Total interest-bearing deposits
537,315
4,271
0.79
%
472,685
7,762
1.64
%
Federal Home Loan Bank advances
97,621
1,519
1.56
%
104,479
1,916
1.83
%
Total interest-bearing liabilities
634,936
5,790
0.91
%
577,164
9,678
1.68
%
Non-interest-bearing deposits
30,952
22,109
Other non-interest-bearing liabilities
8,822
9,371
Total liabilities
674,710
608,644
Total equity
142,387
124,361
Total liabilities and equity
$
817,097
$
733,005
Net interest income
$
19,277
$
13,598
Interest rate spread (1)
2.33
%
1.63
%
Net interest margin (2)
2.50
%
1.93
%
Average interest-earning assets to average
interest-bearing liabilities
122.04
%
122.01
%
- Interest rate spread represents the difference between the
weighted average yield on interest-earning assets and the weighted
average cost of interest-bearing liabilities.
- Net interest margin represents net interest income divided by
average total interest-earning assets.
- Annualized.
Rate/Volume Analysis
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 December
31, 2021 Compared to Three Months Ended December 31, 2020
Twelve Months Ended December
31, 2021 Compared to Twelve Months Ended December 31, 2020
Increase (Decrease) Due
to
Increase (Decrease) Due
to
Volume
Rate
Net
Volume
Rate
Net
(In thousands)
Interest income:
Cash and cash equivalents
$
46
$
(60
)
$
(14
)
$
47
$
(345
)
$
(298
)
Loans receivable
609
(190
)
419
762
1,039
1,801
Securities
568
(482
)
86
462
(106
)
356
Other interest earning assets
(31
)
6
(25
)
(20
)
(48
)
(68
)
Total interest-earning assets
1,192
(726
)
466
1,251
540
1,791
Interest expense:
NOW and money market accounts
230
(176
)
54
308
(68
)
240
Savings accounts
84
(63
)
21
64
6
70
Certificates of deposit
86
(813
)
(727
)
(120
)
(2,113
)
(2,233
)
Federal Home Loan Bank advances
(230
)
134
(96
)
(108
)
148
40
Total interest-bearing liabilities
170
(918
)
(748
)
144
(2,027
)
(1,883
)
Net increase (decrease) in net interest
income
$
1,022
$
192
$
1,214
$
1,107
$
2,567
$
3,674
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 December
31, 2021
Income Before Income Taxes
Provision for Income Taxes
Net Income
GAAP basis
$
2,437,244
$
404,372
$
2,032,872
Add: merger-related expenses
—
—
—
Non-GAAP basis
$
2,437,244
$
404,372
$
2,032,872
Three months ended December
31, 2020
Income Before Income Taxes
Provision for Income Taxes
Net Income
GAAP basis
$
1,445,843
$
399,524
$
1,046,319
Add: merger-related expenses
$
89,069
$
24,939
$
64,130
Non-GAAP basis
$
1,534,912
$
424,463
$
1,110,449
Twelve months ended December
31, 2021
Income Before Income Taxes
Provision for Income Taxes
Net Income
GAAP basis
$
9,395,250
$
1,875,175
$
7,520,075
Add: merger and acquisition related
expenses
392,197
—
392,197
ADD: Charitable Foundation
Contribution
—
—
—
Less: Bargain purchase gain
(1,950,970
)
—
(1,950,970
)
Non-GAAP basis
$
7,836,477
$
1,875,175
$
5,961,302
Twelve months ended December
31, 2020
Income Before Income Taxes
Provision for Income Taxes
Net Income
GAAP basis
$
2,505,530
$
437,305
$
2,068,225
Add: merger and acquisition related
expenses
167,675
—
167,675
Add: Charitable Foundation
Contribution
2,881,500
809,990
2,071,510
Less: Bargain purchase gain
—
—
—
Non-GAAP basis
$
5,554,705
$
1,247,295
$
4,307,410
Twelve months ended December
31,
Return on average assets (annualized):
2021
2020
GAAP
1.23
%
0.28
%
Adjustments
0.25
%
0.27
%
Non-GAAP
0.98
%
0.55
%
Return on average equity (annualized):
GAAP
7.06
%
1.66
%
Adjustments
1.46
%
1.59
%
Non-GAAP
5.60
%
3.25
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220202005911/en/
Joseph Coccaro – President & CEO, 201-862-0660 ext. 1110
Bogota Financial (NASDAQ:BSBK)
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