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
%
- 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
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
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220727005990/en/
Joseph Coccaro – President & CEO, 201-862-0660 ext. 1110
Bogota Financial (NASDAQ:BSBK)
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