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What changed in Bogota Financial Corp.'s 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of Bogota Financial Corp.'s 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+280 added−248 removedSource: 10-K (2025-03-28) vs 10-K (2024-03-28)

Top changes in Bogota Financial Corp.'s 2024 10-K

280 paragraphs added · 248 removed · 213 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

83 edited+10 added−12 removed202 unchanged
Biggest changeThe effect of the adoption of ASC 326 on the loan portfolio segments and the ACL by portfolio segment was: Pre Adoption The effect of adoption Post Adoption Assets (Dollars in thousands) ACL on loans Residential First Mortgage $ 1,603 $ 212 $ 1,815 Commercial and Multi-Family Real Estate 615 (615) — Commercial Real Estate — 523 523 Multi-Family Real Estate — 260 260 Construction 258 1 259 Commercial and Industrial 4 — 4 Home Equity and Other Consumer 98 (98) — Liabilities ACL for unfunded commitments — 152 152 Total $ 2,578 $ 435 $ 3,013 At December 31, 2023 2022 Allowance for Credit Losses Percent of Allowance in Category to Total Allocated Allowance Percent of Loans in Each Category to Total Loans Allowance for Loan Losses Percent of Allowance in Category to Total Allocated Allowance Percent of Loans in Each Category to Total Loans (Dollars in thousands) Residential real estate loans $ 1,852 66.47 % 67.75 % $ 1,602 62.14 % 64.59 % Commercial and multi-family real estate loans — — — 615 23.86 22.50 Commercial real estate loans 437 15.69 13.91 — — — Multi-family real estate loans 317 11.38 10.54 — — — Construction loans 158 5.67 6.87 259 10.05 8.57 Commercial and industrial loans 22 0.79 0.93 4 0.16 0.23 Consumer loans — — — 98 3.8 4.44 Total $ 2,786 100.00 % 100.00 % $ 2,578 100.00 % 100.00 % Investment Activities General.
Biggest changeAt December 31, 2024 2023 Allowance for Credit Losses Percent of Allowance in Category to Total Allocated Allowance Percent of Loans in Each Category to Total Loans Allowance for Loan Losses Percent of Allowance in Category to Total Allocated Allowance Percent of Loans in Each Category to Total Loans (Dollars in thousands) Residential real estate loans $ 1,681 64.14 % 66.19 % $ 1,852 66.47 % 67.75 % Commercial real estate loans 508 19.38 16.52 437 15.69 13.91 Multi-family real estate loans 289 11.03 10.38 317 11.38 10.54 Construction loans 123 4.69 6.05 158 5.67 6.87 Commercial and industrial loans 20 0.76 0.86 22 0.79 0.93 Consumer loans — — — — — — Total $ 2,621 100.00 % 100.00 % $ 2,786 100.00 % 100.00 % Investment Activities General.
Subject to market conditions and our asset-liability analysis, we expect to continue to focus on commercial real estate and multi-family lending as part of our effort to diversify the loan portfolio and increase the overall yield earned on our loans.
Subject to market conditions and our asset-liability analysis, we expect to continue to focus on commercial and multi-family real estate lending as part of our effort to diversify the loan portfolio and increase the overall yield earned on our loans.
In addition, the NJDBI and the Federal Deposit Insurance Corporation periodically review our allowance for credit losses and as a result of such reviews, they may require us to adjust our allowance for credit losses or recognize loan charge-offs.
In addition, the NJDBI and the Federal Deposit Insurance Corporation periodically review our allowance for credit losses and as a result of such reviews, they may require us to adjust our allowance for credit losses or recognize loan charge-offs. Allowance for Credit Losses .
In addition, the Federal Deposit Insurance Corporation is authorized to permit state-chartered banks and savings banks to engage in state-authorized activities or investments not permissible for national banks (other than non-subsidiary equity investments) if they meet all applicable capital requirements and it is determined that such activities or investments do not pose a significant risk to the Deposit Insurance Fund.
In addition, the Federal Deposit Insurance Corporation is authorized to permit state-chartered savings banks to engage in state-authorized activities or investments not permissible for national banks (other than non-subsidiary equity investments) if they meet all applicable capital requirements and it is determined that such activities or investments do not pose a significant risk to the Deposit Insurance Fund.
An institution is considered “well capitalized” if it has a CBLR ratio of 9.0% or greater, starting in 2022, or if it has a total risk-based capital ratio of 10.0% or greater, a Tier 1 risk-based capital ratio of 8.0% or greater, a leverage ratio of 5.0% or greater and a common equity Tier 1 capital ratio of 6.5% or greater.
An institution is considered “well capitalized” if it has, starting in 2022, a CBLR ratio of 9.0% or greater, or if it has a total risk-based capital ratio of 10.0% or greater, a Tier 1 risk-based capital ratio of 8.0% or greater, a leverage ratio of 5.0% or greater and a common equity Tier 1 capital ratio of 6.5% or greater.
Generally, Section 23A of the Federal Reserve Act and the Federal Reserve Board’s Regulation W, as made applicable to Bogota Savings Bank through Section 18(j) of the Federal Deposit Insurance Act and Federal Deposit Insurance Corporation regulation, prohibit a bank and its subsidiaries from engaging in a “covered transaction” if the aggregate amount of covered transactions outstanding with the affiliate, including the proposed transaction, would exceed an amount equal to 10.0% of the bank’s capital stock and surplus, or if the aggregate amount of covered transactions outstanding with all affiliates, including the proposed transaction, would exceed an amount equal to 20.0% of the bank’s capital stock and surplus.
Generally, Section 23A of the Federal Reserve Act and the Federal Reserve Board’s Regulation W, as made applicable to Bogota Savings Bank through Section 18(j) of the Federal Deposit Insurance Act, prohibit a bank and its subsidiaries from engaging in a “covered transaction” if the aggregate amount of covered transactions outstanding with the affiliate, including the proposed transaction, would exceed an amount equal to 10.0% of the bank’s capital stock and surplus, or if the aggregate amount of covered transactions outstanding with all affiliates, including the proposed transaction, would exceed an amount equal to 20.0% of the bank’s capital stock and surplus.
Employee retention helps us operate efficiently and achieve one of our business objectives, which is being a low-cost provider. We believe our commitment to living out our core values, actively prioritizing concern for our employees’ well-being, supporting our employees’ career goals, offering competitive wages and providing valuable fringe benefits aids in retention of our top-performing employees.
Employee retention helps us operate efficiently and achieve one of our business objectives, which is being a low-cost provider. We believe our commitment to living our core values, actively prioritizing concern for our employees’ well-being, supporting our employees’ career goals, offering competitive wages and providing valuable fringe benefits aids in retention of our top-performing employees.
Insurance of deposits may be terminated by the Federal Deposit Insurance Corporation upon a finding that the institution has engaged in unsafe or unsound practices, is in an unsafe or unsound condition to continue operations or has violated any applicable law, regulation, rule, order or regulatory condition imposed in writing.
Insurance of deposits may be terminated by the Federal Deposit Insurance Corporation upon a finding that the institution has engaged in unsafe or unsound practices, is in an unsafe or unsound condition to continue operations or has violated any applicable law, regulation, order or regulatory condition imposed in writing.
Bogota Savings Bank’s most recent Federal Deposit Insurance Corporation CRA rating in August 2023 was “Satisfactory.” On October 24, 2023, the FDIC and the other federal banking agencies issued a final rule to strengthen and modernize the CRA regulations.
Bogota Savings Bank’s most recent Federal Deposit Insurance Corporation CRA rating in August 2023 was “Satisfactory.” On October 24, 2023, the Federal Deposit Insurance Corporation and the other federal banking agencies issued a final rule to strengthen and modernize the CRA regulations.
A bank’s loans to its, and its affiliates', executive officers, directors, any owner of 10% or more of its stock (each, an insider) and any of certain entities controlled by any such person (an insider’s related interests) as well as loans to insiders of affiliates and such insiders’ related interests are subject to the conditions and limitations imposed by Section 22(h) of the Federal Reserve Act and its implementing regulations, Regulation O, as made applicable to Bogota Savings Bank through Section 18(j) of the Federal Deposit Insurance Act and Federal Deposit Insurance Corporation regulation.
A bank’s loans to its executive officers, directors, any owner of 10% or more of its stock (each, an insider) and any of certain entities controlled by any such person (an insider’s related interests) as well as loans to insiders of its affiliates and to such insiders’ related interests are subject to the conditions and limitations imposed by Section 22(h) of the Federal Reserve Act and its implementing regulation, Regulation O, as made applicable to Bogota Savings Bank through Section 18(j) of the Federal Deposit Insurance Act and Federal Deposit Insurance Corporation regulation.
Money center banks, such as Bank of America, JP Morgan Chase, Wells Fargo and Citi, and large regional banks, such as TD Bank, M&T Bank and PNC Bank, have a significant presence in the markets that we serve. 4 Table of Contents Our competition for loans comes primarily from the competitors referenced above and from other financial service providers, such as mortgage companies and mortgage brokers.
Money center banks, such as Bank of America, JP Morgan Chase, Wells Fargo and Citi, and large regional banks, such as TD Bank, M&T Bank and PNC Bank, have a significant presence in the m arkets that we serve. 4 Table of Contents Our competition for loans comes primarily from the competitors referenced above and from other financial service providers, such as mortgage companies and mortgage brokers.
Debt securities investment accounting guidance requires that at the time of purchase we designate a security as held to maturity, available for sale, or trading, depending on our ability and intent. 12 Table of Contents Portfolio Maturities and Yields. The composition and maturities of the investment securities portfolio at December 31, 2023 are summarized in the following table.
Debt securities investment accounting guidance requires that at the time of purchase we designate a security as held to maturity, available for sale, or trading, depending on our ability and intent. 12 Table of Contents Portfolio Maturities and Yields. The composition and maturities of the investment securities portfolio at December 31, 2024 are summarized in the following table.
Continual learning and career development is advanced through annual performance and conversations with employees, internally developed training programs, customized corporate training engagements and educational reimbursement programs.
Continual learning and career development is advanced through annual performance reviews and conversations with employees, internally developed training programs, customized corporate training engagements and educational reimbursement programs.
The amount of uninsured deposits is estimated on a per account basis, actual uninsured deposits may vary when accounts are combined to a single owner. The following table sets forth the maturity of the portion of our certificate of deposit that are in excess of the Federal Deposit Insurance Corporation insurance limit as of December 31, 2023.
The amount of uninsured deposits is estimated on a per account basis, actual uninsured deposits may vary when accounts are combined to a single owner. The following table sets forth the maturity of the portion of our certificate of deposit that are in excess of the Federal Deposit Insurance Corporation insurance limit as of December 31, 2024 .
At December 31, 2023, Bogota Savings Bank was classified as a “well capitalized” institution. At each successive lower capital category, an insured depository institution is subject to more restrictions and prohibitions, including restrictions on growth, interest rates paid on deposits, payment of dividends, and acceptance of brokered deposits.
At December 31, 2024 , Bogota Savings Bank was classified as a “well capitalized” institution. At each successive lower capital category, an insured depository institution is subject to more restrictions and prohibitions, including restrictions on growth, interest rates paid on deposits, payment of dividends, and acceptance of brokered deposits.
In evaluating the property securing the loan, among other factors, we consider the net operating income of the mortgaged property before debt service and depreciation, the debt service coverage ratio (the ratio of net operating income to debt service) to ensure that it is at least 1.25x of the monthly debt service, and the ratio of the loan amount to the appraised value of the mortgaged property.
In evaluating the property securing the loan, among other factors, we consider the net operating income of the mortgaged property before debt service and depreciation, the debt service coverage ratio (the ratio of net operating income to debt ser vice) to ensure that it is at least 1.25x of the monthly debt service, and the ratio of the loan amount to the appraised value of the mortgaged property.
We compete for loans by offering high quality personalized service, providing convenience and flexibility, providing timely responses on loan applications, and by offering competitive pricing. Loan Portfolio Maturities. The following tables set forth the contractual maturities of our total loan portfolio at December 31, 2023.
We compete for loans by offering high quality personalized service, providing convenience and flexibility, providing timely responses on loan applications, and by offering competitive pricing. Loan Portfolio Maturities. The following tables set forth the contractual maturities of our total loan portfolio at December 31, 2024 .
Bogota Savings Bank was in compliance with this requirement at December 31, 2023. Holding Company Regulation Federal Holding Company Regulation . Bogota Financial, MHC and Bogota Financial Corp. are bank holding companies registered with the Federal Reserve Board and are subject to regulations, examination, supervision and reporting requirements applicable to bank holding companies.
Bogota Savings Bank was in compliance with this requirement at December 31, 2024 . Holding Company Regulation Federal Holding Company Regulation . Bogota Financial, MHC and Bogota Financial Corp. are bank holding companies registered with the Federal Reserve Board and are subject to regulations, examination, supervision and reporting requirements applicable to bank holding companies.
We do not know of any practice, condition or violation that might lead to termination of Bogota Savings Bank’s deposit insurance, see Note 7 for more information. 19 Table of Contents Privacy Regulations.
We do not know of any practice, condition or violation that might lead to termination of Bogota Savings Bank’s deposit insurance, see Note 8 for more information. 19 Table of Contents Privacy Regulations.
The agencies reserved the authority to disallow the use of the CBLR framework by a financial institution or holding company, based on the risk profile of the organization. Bogota Savings Bank elected to use the CBLR framework as of December 31, 2022.
The agencies reserved the authority to disallow the use of the CBLR framework by a financial institution or holding company, based on the risk profile of the organization. Bogota Savings Bank elected to use the CBLR framework as of December 31, 2023 .
In underwriting multi-family real estate loans, we require a debt service coverage ratio of at least 1.20x and consider several factors, including the age and condition of the collateral, the financial resources and income level of the borrower and the borrower’s experience in owning or managing similar properties.
In underwriting multi-family real estate loans, we require a debt ser vice coverage ratio of at least 1.20x and consider several factors, including the age and condition of the collateral, the financial resources and income level of the borrower and the borrower’s experience in owning or managing similar properties.
The exercise of these lending, investment and activity powers is limited by federal law and regulations. See “—Federal Bank Regulation—Activities and Investments” below. Loan-to-One-Borrower Limitations.
The exercise of these lending, investment and activity powers is limited by federal law and regulations. See “—Federal Bank Regulation—Activities and Investments” below. Loans-to-One-Borrower Limitations.
Our commercial real estate loans are offered with fixed or adjustable interest rates. Interest rates on our adjustable-rate loans generally adjust every three, five, seven and ten years and the interest rate is indexed to the Federal Home Loan Bank advance rate, plus a margin, subject to an interest rate floor.
Our commercial real estate loans are offered with fixed or adjustable interest rates. Interest rates on our adjustable-rate loans generally adjust every three, five, seven and ten years and the interest rate is indexed to the Federal Home Loan Bank advance rate, plus a margin, sub ject to an interest rate floor.
In addition, a state nonmember bank may control a subsidiary that engages in activities as principal that would only be permitted for a national bank to conduct in a “financial subsidiary” if the bank meets specified conditions and deducts its investment in the subsidiary for regulatory capital purposes. Interstate Banking and Branching.
In addition, a state non-member bank may control a subsidiary that engages in activities as principal that would only be permitted for a national bank to conduct in a “financial subsidiary” if the bank meets specified conditions and deducts its investment in the subsidiary for regulatory capital purposes. Interstate Banking and Branching.
In addition, nearly all of our employees are stockholders of the Company through participation in our Employee Stock Ownership Plan, which aligns employee and stockholder interests by providing stock ownership on a tax-deferred basis at no investment cost to our employees. At December 31, 2023, 38% of our current staff had been with us for five years or more.
In addition, nearly all of our employees are stockholders of the Company through participation in our Employee Stock Ownership Plan, which aligns employee and stockholder interests by providing stock ownership on a tax-deferred basis at no investment cost to our employees. At December 31, 2024 , 40% of our current staff had been with us for five years or more.
A savings bank may lend an additional 10% of the bank’s capital funds if secured by collateral meeting the requirements of the New Jersey Banking Act. Bogota Savings Bank currently complies with applicable loan-to-one-borrower limitations. Dividends.
A savings bank may lend an additional 10% of the bank’s capital funds if secured by collateral meeting the requirements of the New Jersey Banking Act. Bogota Savings Bank currently complies with applicable state loans-to-one-borrower limitations. Dividends.
Bogota Financial, MHC is subject to comprehensive regulation and examination by the New Jersey Department of Banking and Insurance (the “NJDBI”) and the Federal Reserve Board.
Bogota Financial Corp. is subject to comprehensive regulation and examination by the New Jersey Department of Banking and Insurance (the “NJDBI”) and the Federal Reserve Board.
Federal laws also prohibit unfair, deceptive or abusive acts or practices against consumers, which can be enforced by the Consumer Financial Protection Bureau, the Federal Deposit Insurance Corporation and state attorneys general. Federal Home Loan Bank System Bogota Savings Bank is a member of the Federal Home Loan Bank System, which consists of 11 regional Federal Home Loan Banks.
Federal laws also prohibit unfair, deceptive or abusive acts or practices against consumers, which can be enforced by the Federal Deposit Insurance Corporation and state attorneys general. Federal Home Loan Bank System Bogota Savings Bank is a member of the Federal Home Loan Bank System, which consists of 11 regional Federal Home Loan Banks.
Bogota Financial, MHC is subject to comprehensive regulation and examination by the NJDBI and the Federal Reserve Board. 3 Table of Contents Bogota Savings Bank Founded in 1893, Bogota Savings Bank is a New Jersey-chartered savings bank that operates from six offices located in Bogota, Hasbrouck Heights, Newark, Oak Ridge, Parsippany and Teaneck, New Jersey and a loan production office in Spring Lake, New Jersey.
Bogota Financial, MHC is subject to comprehensive regulation and examination by the NJDBI and the Federal Reserve Board. 3 Table of Contents Bogota Savings Bank Founded in 1893, Bogota Savings Bank is a New Jersey-chartered savings bank that operates from seven offices located in Bogota, Hasbrouck Heights, Newark, Oak Ridge, Parsippany, Teaneck and Upper Saddle River, New Jersey and a loan production office in Spring Lake, New Jersey.
We employ as officers of Bogota Financial Corp. only persons who are officers of Bogota Savings Bank. However, we will use the support staff of Bogota Savings Bank from time to time. These individuals will not be separately compensated by Bogota Financial Corp. Bogota Financial Corp. may hire additional employees, as appropriate, to the extent it expands its business.
It employs as officers of Bogota Financial Corp. only persons who are officers of Bogota Savings Bank. However, it uses the support staff of Bogota Savings Bank from time to time. These individuals will not be separately compensated by Bogota Financial Corp. Bogota Financial Corp. may hire additional employees, as appropriate, to the extent it expands its business.
At December 31, 2023, our largest multi-family real estate loan had an outstanding balance of $4.7 million and was secured by an apartment building located in our primary market area. At December 31, 2023, this loan was performing according to its original terms.
At December 31, 2024 , our largest multi-family real estate loan had an outstanding balance of $7.4 million and was secured by an apar tment building located in our primary market area. At December 31, 2024 , this loan was performing according to its original terms.
Based on FDIC data at June 30, 2023, (the latest date for which information is available), we had 0.85% of the FDIC-insured deposit market share in Bergen County, which was the 19 th largest market share among the 42 institutions with offices in the county.
Based on FDIC data at June 30, 2024, (the latest date for which information is available), we had 0.86% of the FDIC-insured deposit market share in Bergen County, which was the 19 th largest market share among the 43 institutions with offices in the county.
Based on FDIC data at June 30, 2023, we had 0.15% of the FDIC-insured deposit market share in Morris County, which was the 24 th largest market share among the 30 institutions with offices in the county.
Based on FDIC data at June 30, 2024, we had 0.14% of the FDIC-insured deposit market share in Morris County, which was the 24 th largest market share among the 29 institutions with offices in the county.
At December 31, 2023, we had consolidated total assets of $939.3 million, total deposits of $625.3 million and total equity of $137.2 million. Bogota Savings Bank is subject to comprehensive regulation and examination by the NJDBI and the Federal Deposit Insurance Corporation (the “FDIC”). Our website address is www.bogotasavingsbank.com .
At December 31, 2024 , we had consolidated total assets of $971.5 million, total deposits of $642.2 million and total equity of $137.3 million. Bogota Savings Bank is subject to comprehensive regulation and examination by the NJDBI and the Federal Deposit Insurance Corporation (the “FDIC”). Our website address is www.bogotasavingsbank.com .
Based on FDIC data at June 30,2023, we had 0.06% of the FDIC-insured deposit market share in Essex County, which was the 31st largest market share among the 31 institutions with offices in the county.
Based on FDIC data at June 30, 2024, we had 0.06% of the FDIC-insured deposit market share in Essex County, which was the 30th largest market share among the 30 institutions with offices in the county.
Our one- to four-family residential loan portfolio consists of mortgage loans that enable borrowers to purchase or refinance existing homes, most of which serve as the primary residence of the borrower.
Our one- to four-family residential loan portfolio consists of mortgage loans that enable borrowers to purchase or refinance existing homes, most of which serve as the primary residence of the borrower, as well as home equity loans and lines of credit.
At December 31, 2023, we had $53.3 million of brokered deposits (63 accounts), which represented 8.5% of total deposits at December 31, 2023 with such funds having a weighted average remaining term to maturity of 36 months. In a rising rate environment, we may be unwilling or unable to pay competitive rates.
This compares to $53.3 million of brokered deposits (63 accounts), which represented 8.5% of total deposits and 38.9% of total capital at December 31, 2023 with such funds having a weighted average remaining term to maturity of 13 months. In a rising rate environment, we may be unwilling or unable to pay competitive rates.
At December 31, 2023, based on the 15% limitation, Bogota Savings Bank’s loans-to-one-borrower limit was approximately $19.7 million. At December 31, 2023, our largest loan relationship with a single borrower was for $16.7 million, which consisted of four loans secured by various commercial real estate and multi-family properties in our primary market area.
At December 31, 2024 , based on the 15% limitation, Bogota Savings Bank’s loans-to-one-borrower limit was approx imately $19.4 million. At December 31, 2024 , our largest loan relationship with a single borrower was for $16.2 m illion, which consisted of four loans secured by various commercial real estate and multi-family properties in our primary market area.
Control, as defined under the Change in Bank Control Act and applicable federal regulations, means ownership, control of or the power to vote 25% or more of any class of voting securities of the company.
Control, as defined under the Change in Bank Control Act and applicable federal regulations, means the power, directly or indirectly, to direct the management or policies of a company, or the ownership, control of or the power to vote 25% or more of any class of voting securities of the company.
See Note 9 in the Notes to consolidated financial statements that appear in this Annual Report on Form 10-K for additional information. At December 31, 2023, Bogota Savings Bank had net operating loss carryovers assumed from the Gibraltar merger. Capital Loss Carryovers.
See Note 10 in the Notes to consolidated financial statements that appear in this Annual Report on Form 10-K for additional information. At December 31, 2024 , Bogota Savings Bank had net operating loss carryovers assumed from the Gibraltar merger and incurred in 2024 totaling $3.2 million. Capital Loss Carryovers.
Bureau of Labor Statistics. The economy in our primary market area has benefited from being varied and diverse, with a broad economic base. Bergen, Essex, Monmouth, Ocean and Morris Counties have a median household income of approximately $82,000, $55,000, $82,000, $60,000 and $97,000, respectively, as of December 31, 2023, according to U.S. Bureau of Labor Statistics.
Bureau of Labor Statistics. The economy in our primary market area has benefited from being varied and diverse, with a broad economic base. Bergen, Essex, Monmouth, Ocean and Morris Counties have a median household income of approximately $114,000, $75,000, $118,000, $81,000 and $132,000, respectively, as of December 31, 2024 , according to U.S. Bureau of Labor Statistics.
At December 31, 2023, multi-family real estate loans totaled $75.6 million representing 10.5% of our total loan portfolio. Our multi-family real estate loans are generally secured by properties consisting of five or more rental units within our market area.
At December 31, 2024 , multi-family real estate loans totaled $74.2 million representing 10.4% of our total loan portfolio. Our multi-family real estate loans are generally secured by properties consisting of five or more rental units within our market area.
Commercial and Multi-Family Real Estate Loans . At December 31, 2023, we had $175.4 million in commercial and multi-family real estate loans, representing 24.5% of our total loan portfolio. Our commercial real estate loans are secured primarily by office buildings, industrial facilities, retail facilities and other commercial properties, substantially all of which are located in our primary market area.
Commercial and Multi-Family Real Estate Loans . At December 31, 2024 , we had $192.2 million in commercial and multi-family real estate loans, representing 26.9% of our total loan portfolio. Our commercial real estate loans are secured primarily by office buildings, industrial facilities, retail facilities and other commercial properties, substantially all of which are located in our primary market area.
At December 31, 2023, our largest commercial real estate loan totaled $9.1 million and was secured by an office building located in our primary market area. At December 31, 2023, this loan was performing in accordance with its original terms. 6 Table of Contents We consider a number of factors in originating commercial real estate loans.
At December 31, 2024 , our largest commercial real estate loan totaled $8.6 million and was secured by a shopping mall located in our primary market area. At December 31, 2024 , this loan was performing in accordance with its original terms. 6 Table of Contents We consider a number of factors in originating commercial real estate loans.
At December 31, 2023, municipal deposits totaled $57.5 million, which represented 9.2% of total deposits. 13 Table of Contents Deposit account terms vary according to the minimum balance required, the time period that funds must remain on deposit, and the interest rate, among other factors.
At December 31, 2024 , municipal deposits totaled $ 30.7 million, which represented 4.8 % of total deposits. 13 Table of Contents Deposit account terms vary according to the minimum balance required, the time period that funds must remain on deposit, and the interest rate, among other factors.
The applicability date for the majority of the provisions in the CRA regulations is January 1, 2026, and additional requirements will be applicable on January 1, 2027. Consumer Protection and Fair Lending Regulations.
Under the revised regulations, the applicability date for the majority of the provisions in the CRA regulations is January 1, 2026, and additional requirements under the revised regulations will be applicable on January 1, 2027.
As of December 2023, the unemployment rate was 2.7% for Bergen County, 4.0% for Essex County, 2.6% for Monmouth County, 3.1% for Ocean County and 2.3% for Morris County, compared to 4.8% for New Jersey and a national rate of 3.7% according to US Bureau of Labor Statistics. Competition We face significant competition for deposits and loans.
As of December 2024 , the unemployment rate was 3.5% for Bergen County, 5.4% for Essex County, 3.6% for Monmouth County, 4.0% for Ocean County and 3.4% for Morris County, compared to 4.6% for New Jersey and a national rate of 4.0% according to US Bureau of Labor Statistics. Competition We face significant competition for deposits and l oans.
Bogota Savings Bank’s capital management policy is designed to build and maintain capital levels that exceed regulatory standards and appropriately provide for growth. The leverage ratio of Bogota Savings Bank at December 31, 2023 was 13.96%; see Note 13 for more information. 17 Table of Contents Standards for Safety and Soundness.
Bogota Savings Bank’s capital management policy is designed to build and maintain capital levels that exceed regulatory standards and appropriately provide for growth. The leverage ratio of Bogota Savings Bank at December 31, 2024 wa s 13.34%; see No te 14 for more information. 17 Table of Contents Standards for Safety and Soundness.
The median household income for New Jersey is approximately $92,000 and the median household income is approximately $75,000 for the United States.
The median household income for New Jersey is approximately $101,000 and the median household income is approximately $81,000 for the United States.
As such, it is grouped with any other capital losses for the year to which it is carried and is used to offset any capital gains. Any loss remaining after the five-year carryover period that has not been deducted is no longer deductible. At December 31, 2023, Bogota Savings Bank had no capital loss carryovers. Corporate Dividends.
As such, it is grouped with any other capital losses for the year to which it is carried and is used to offset any capital gains. Any loss remaining after the five-year carryover period that has not been deducted is no longer deductible.
A company loses emerging growth company status on the earlier of: (1) the last day of the fiscal year of the company during which it had total annual gross revenues of $1.07 billion or more; (2) the last day of the fiscal year of the issuer following the fifth anniversary of the date of the first sale of common equity securities of the company pursuant to an effective registration statement under the Securities Act of 1933; (3) the date on which such company has, during the previous three-year period, issued more than $1.0 billion in non-convertible debt; or (4) the date on which such company is deemed to be a “large accelerated filer” under Securities and Exchange Commission regulations (generally, a “large accelerated filer” is defined as a corporation with at least $700 million of voting and non-voting equity held by non-affiliates). 22 Table of Contents Sarbanes-Oxley Act of 2002 The Sarbanes-Oxley Act of 2002 was enacted to improve corporate responsibility, provide for enhanced penalties for accounting and auditing improprieties at publicly traded companies and protect investors by improving the accuracy and reliability of corporate disclosures pursuant to the securities laws.
A company loses emerging growth company status on the earlier of: (1) the last day of the fiscal year of the company during which it had total annual gross revenues of $1.07 billion or more; (2) the last day of the fiscal year of the issuer following the fifth anniversary of the date of the first sale of common equity securities of the company pursuant to an effective registration statement under the Securities Act of 1933; (3) the date on which such company has, during the previous three-year period, issued more than $1.0 billion in non-convertible debt; or (4) the date on which such company is deemed to be a “large accelerated filer” under Securities and Exchange Commission regulations (generally, a “large accelerated filer” is defined as a corporation with at least $700 million of voting and non-voting equity held by non-affiliates).
Bergen County ranks as the most populous county in New Jersey (out of 21 counties) with a population of approximately 953,000 compared to an estimated population of 849,000 for Essex County, 644,000 for Monmouth County, 656,000 for Ocean County, 511,000 for Morris County and 9.3 million for the entire state as of December 31, 2023 according to U.S.
Bergen County is the most populous county in New Jersey (out of 21 counties) with a population of approximately 958,000 compared to an estimated population of 851,000 for Essex County, 643,000 for Monmouth County, 659,000 for Ocean County, 514,000 for Morris County and 9.3 million for the entire state as of December 31, 2024 according to U.S.
As of December 31, 2022, the aggregate amount of uninsured deposits (deposits in amounts greater than or equal to $250,000, which is the maximum amount for federal deposit insurance) for noninterest bearing demand accounts, NOW accounts and money market accounts, savings accounts and certificates of deposit was $68.1 million, $4.4 million and $50.0 million respectively.
As of December 31, 2023 , the aggregate amount of uninsured deposits (deposits in amounts greater than or equal to $250,000, which is the maximum amount for federal deposit insurance) for noninterest bearing demand accounts, NOW accounts and money market accounts, savings accounts and certificates of deposit w as $42.1 million, $8.3 million and $135.1 m illion respectively.
Construction Loans. We also originate loans to finance the construction of one- to four-family residential properties and for the acquisition of land. At December 31, 2023, residential construction loans totaled $49.3 million, or 6.9% of our total loan portfolio. Most of these loans are secured by properties located in our primary market area.
We also originate loans to finance the construction of one- to four-family residential properties and for the acquisition of land. At December 31, 2024 , residential construction loans totaled $249,000, or less than 1.0% of our total loan portfolio. These loans are secured by properties located in our primary market area.
We offer consumer loans to customers residing in our primary market area. Our consumer loans consist primarily of home equity loans and lines of credit. At December 31, 2023, consumer loans totaled $29.4 million, representing less than 4.1% of our total loan portfolio.
We offer consumer loans to customers residing in our primary market area. Our consumer loans consist primarily of consumer lines of credit. At December 31, 2024 , consumer loans totaled $81,000, representing less than 1.0% of our total loan portfolio.
At December 31, 2023, one- to four-family residential real estate loans totaled $486.1 million, or 67.7% of our total loan portfolio, and consisted of $325.7 million of fixed-rate loans and $160.4 million of adjustable-rate loans. Most of these one- to four-family residential properties are located in our primary market area.
At December 31, 2024 , one- to four-family residential real estate loans totaled $472.7 million, or 66.2% of our total loan portfolio, and consisted of $318.5 million of fixed-rate loans and $154.2 million of adjustable-rate loans. Most of these one- to four-family residential properties are located in our primary market area.
The procedures for underwriting consumer loans include assessing the applicant’s payment history on other indebtedness, the applicant’s ability to meet existing obligations and payments on the proposed loan, and the loan-to-value ratio. Although the applicant’s creditworthiness is a primary consideration, the underwriting process also includes a comparison of the value of the collateral, if any, to the proposed loan amount.
The procedures for underwriting consumer loans include assessing the applicant’s payment history on other indebtedness and the applicant’s ability to meet existing obligations and payments on the proposed loan. The applicant’s creditworthiness is a primary consideration in the underwriting process. Construction Loans.
For the years ended December 31, 2023 and 2022, we purchased for our portfolio $15.2 million and $147.9 million, respectively, of loans from these mortgage brokers. As part of purchasing the loans, we acquire the servicing rights to the loans.
For the years ended December 31, 2024 and 2023 , we purchased for our portfo lio $23.9 million an d $15.2 million, respectively, of loans from these mortgage brokers. As part of purchasing the loans, we typically, but not always, acquire the servicing rights to the loans.
Lending Activities Historically, our lending activities have emphasized one- to four-family residential real estate loans, and such loans continue to comprise the largest portion of our loan portfolio.
Lending Activities Historically, our lending activities have emphasized one- to four-family residential real estate loans, and such loans continue to comprise the largest portion of our loan portfolio. Other areas of lending include commercial and multi-family real estate loans and, to a much lesser extent, commercial and industrial loans and construction loans.
At or for the Years Ended December 31, 2023 2022 (Dollars in thousands) Gross loans $ 717,475 $ 721,604 Net loans 714,689 719,026 Average loans 713,799 638,679 Non-accrual loans 12,776 857 Allowance at beginning of year 2,861 2,153 Provision (recovery) for credit losses (125 ) 425 Charge offs: Residential real estate loans — — Commercial and multi-family real estate loans — — Construction loans — — Consumer loans — — Total charge-offs — — Recoveries: Residential real estate loans — — Commercial and multi-family real estate loans — — Construction loans — — Consumer loans — — Total recoveries — — Net recoveries — — Allowance for credit losses at end of period $ 2,786 $ 2,578 Allowance for credit losses to non-accrual loans at end of period 21.81 % 300.82 % Allowance for credit losses to total loans outstanding at end of period 0.39 % 0.36 % Non-accrual loans to total loans 1.78 % 0.12 % Net recoveries to average loans outstanding during period — % — % Net recoveries to average residential real estate loans outstanding during period — % — % Net recoveries to average commercial and multi-family real estate loans outstanding during period — % — % Net recoveries to average construction loans outstanding during period — % — % Net recoveries to average commercial and industrial loans outstanding during period — % — % Net recoveries to average consumer loans outstanding during period — % — % 11 Table of Contents Allocation of Allowance for Credit Losses.
At or for the Years Ended December 31, 2024 2023 (Dollars in thousands) Gross loans $ 714,337 $ 717,475 Net loans 711,716 714,689 Average loans 713,138 713,799 Non-accrual loans 13,963 12,776 Allowance at beginning of year 2,786 2,861 Recovery for credit losses (148 ) (125 ) Recovery for off-balance sheet commitments (17 ) — Charge offs: Residential real estate loans — — Commercial and multi-family real estate loans — — Construction loans — — Consumer loans — — Total charge-offs — — Recoveries: Residential real estate loans — — Commercial and multi-family real estate loans — — Construction loans — — Consumer loans — — Total recoveries — — Net recoveries — — Allowance for credit losses at end of period $ 2,621 $ 2,786 Allowance for credit losses to non-accrual loans at end of period 18.77 % 21.81 % Allowance for credit losses to total loans outstanding at end of period 0.37 % 0.39 % Non-accrual loans to total loans 1.95 % 1.78 % Net recoveries to average loans outstanding during period — % — % Net recoveries to average residential real estate loans outstanding during period — % — % Net recoveries to average commercial and multi-family real estate loans outstanding during period — % — % Net recoveries to average construction loans outstanding during period — % — % Net recoveries to average commercial and industrial loans outstanding during period — % — % Net recoveries to average consumer loans outstanding during period — % — % 11 Table of Contents Allocation of Allowance for Credit Losses.
Set forth below is a brief description of material regulatory requirements that are applicable to Bogota Savings Bank, Bogota Financial Corp. and Bogota Financial, MHC.
Bogota Financial Corp. is also subject to the rules and regulations of the Securities and Exchange Commission under the federal securities laws. Set forth below is a brief description of material regulatory requirements that are applicable to Bogota Savings Bank, Bogota Financial Corp. and Bogota Financial, MHC.
Qualified community banks and thrift institutions that maintain a qualified loan portfolio are entitled to a specially computed modification that reduces the income taxable to New Jersey. 23 Table of Contents
The location of the taxpayer’s offices and branches not relevant to the determination of income apportioned to New Jersey. The statutory tax rate is currently 6.5%. Qualified community banks and thrift institutions that maintain a qualified loan portfolio are entitled to a specially computed modification that reduces the income taxable to New Jersey. 23 Table of Contents
It is required to file certain reports with the Federal Reserve Board and the NJDBI and is subject to examination by, and the enforcement authority of, the Federal Reserve Board and the NJDBI. Bogota Financial Corp. is also subject to the rules and regulations of the Securities and Exchange Commission under the federal securities laws.
Both Bogota Financial, MHC and Bogota Financial Corp. are required to file certain reports with the Federal Reserve Board and the NJDBI and are subject to examination by, and the enforcement authority of, the Federal Reserve Board and the NJDBI.
We also provide construction loans primarily to local developers for the construction of one- to four-family residential developments. At December 31, 2023, we had a single commercial construction loan that totaled $11.0 million, or 1.5% of our total loan portfolio. This loan was secured by an office building located in our primary market area.
We also provide construction loans primarily to local developers for the construction of one- to four-family residential developments. At December 31, 2024 , we had commercial construction loans that totaled $42.9 million, or 6.01% of our total loan portfolio. These loans were secured by land and existing buildings located in our primary market area.
In 1999, Bogota Savings Bank established Bogota Properties, LLC, a New Jersey-chartered limited liability company to secure, manage and hold foreclosed assets. Bogota Properties, LLC is currently inactive. Regulation and Supervision General As a New Jersey-chartered savings bank, Bogota Savings Bank is subject to comprehensive regulation by the NJDBI, as its chartering authority, and by the Federal Deposit Insurance Corporation.
In 1999, Bogota Savings Bank established Bogota Properties, LLC, a New Jersey-chartered limited liability company to secure, manage and hold foreclosed assets. Bogota Properties, LLC is currently inactive.
In addition, generally during the term of a construction loan, interest may be funded by the borrower or disbursed from an interest reserve set aside from the construction loan budget.
This type of lending also typically involves higher loan principal amounts and is often concentrated with a small number of builders. In addition, generally during the term of a construction loan, interest may be funded by the borrower or disbursed from an interest reserve set aside from the construction loan budget.
State Taxation Taxable income for New Jersey-chartered financial institutions is apportioned to New Jersey based on the location of the taxpayer’s customers, with special rules for income from certain financial transactions. The location of the taxpayer’s offices and branches not relevant to the determination of income apportioned to New Jersey. The statutory tax rate is currently 6.5%.
Bogota Savings Bank’s federal income tax returns and New Jersey State income tax returns have not been audited in the last three years. State Taxation Taxable income for New Jersey-chartered financial institutions is apportioned to New Jersey based on the location of the taxpayer’s customers, with special rules for income from certain financial transactions.
At December 31, 2023 (In thousands) Maturity Period: Three months or less $ 44,465 Over three through six months 26,758 Over six through twelve months 47,677 Over twelve months 13,160 Total $ 132,060 14 Table of Contents Employees and Human Capital Resources As of December 31, 2023, we had 68 full-time employees and two part-time employees.
At December 31, 2024 (In thousands) Maturity Period: Three months or less $ 15,140 Over three through six months 8,094 Over six through twelve months 5,356 Over twelve months 2,981 Total $ 31,571 14 Table of Contents Employees and Human Capital Resources As of December 31, 2024 , we had 62 full-time employees and three part-time employees.
Consumer loan collections depend on the borrower’s continuing financial stability, and therefore are likely to be adversely affected by various factors, including job loss, divorce, illness or personal bankruptcy. Furthermore, the application of various federal and state laws, including federal and state bankruptcy and insolvency laws, may limit the amount that can be recovered on such loans. Construction Loans.
Consumer loans may entail greater risk than residential mortgage loans, particularly in the case of consumer loans that are unsecured or secured by assets that depreciate rapidly. Consumer loan collections depend on the borrower’s continuing financial stability, and therefore are likely to be adversely affected by various factors, including job loss, divorce, illness or personal bankruptcy.
At December 31, 2023 2022 Amount Percent Average Rate Amount Percent Average Rate (Dollars in thousands) Noninterest bearing demand accounts $ 30,555 4.89 % — % $ 38,653 5.52 % — % NOW accounts 41,321 6.61 1.90 82,720 11.79 0.88 Money market accounts 14,641 2.34 0.30 30,037 4.28 0.32 Savings accounts 45,555 7.28 1.76 57,408 8.18 0.49 Certificates of deposit 493,275 78.88 4.00 492,593 70.23 2.37 Total $ 625,347 100.00 % 3.42 % $ 701,411 100.00 % 1.82 % As of December 31, 2023, the aggregate amount of uninsured deposits (deposits in amounts greater than $250,000, which is the maximum amount for federal deposit insurance) for noninterest bearing demand accounts, NOW accounts and money market accounts, savings accounts and certificates of deposit was $42.1 million, $8.3 million and $135.1 million respectively.
At December 31, 2024 2023 Amount Percent Average Rate Amount Percent Average Rate Noninterest bearing demand accounts $ 32,681,963 5.09 % — % $ 30,554,842 4.89 % — % NOW accounts 55,378,051 8.62 2.53 41,320,723 6.61 1.90 Money market accounts 13,996,460 2.18 0.58 14,641,846 2.34 0.30 Savings accounts 46,851,793 7.30 1.90 45,554,964 7.28 1.76 Certificates of deposit 493,279,775 76.81 4.37 493,274,767 78.88 4.00 Total $ 642,188,042 100.00 % 3.73 % $ 625,347,142 100.00 % 3.42 % As of December 31, 2024 , the aggregate amount of uninsured deposits (deposits in amounts greater than $250,000, which is the maximum amount for federal deposit insurance) for checking accounts (noninterest bearing demand accounts, NOW accounts and money market accounts), savings accounts and certificates of deposit was $11.0 million, $2.1 million and $31.6, millio n respectively.
At December 31, 2023, the outstanding balances of our loan participations where we are not the lead lender totaled $9.0 million, all of which were commercial or multi-family real estate loans. All such loans were performing according to their original terms at December 31, 2023.
We underwrite our participation interest in the loans that we purchase according to our own underwriting criteria and procedures. At December 31, 2024 , the outstanding balances of our loan participations where we are not th e lead lender totaled $15.2 million, all of which were commercial or multi-family real estate loans.
At December 31, 2023, commercial real estate loans totaled $99.8 million, of which $29.6 million was owner-occupied real estate and $70.2 million was secured by income producing, or non-owner-occupied real estate.
At December 31, 2024 , commercial real estate loans totaled $118.0 million, of which $30.7 million was owner-occupied real estate and $87.3 million was sec ured by income producing, or non-owner-occupied real estate.
Before making a commitment to fund a commercial construction loan, we require an appraisal of the property by an independent licensed appraiser. The construction phase is carefully monitored to minimize our risk. All construction projects must be completed in accordance with approved plans and approved by the municipality in which they are located.
The construction phase is carefully monitored to minimize our risk. All construction projects must be completed in accordance with approved plans and approved by the municipality in which they are located. Loan proceeds are disbursed periodically in increments as construction progresses and as inspections by our approved inspectors warrant. Commercial and Industrial Loans.
Because of the uncertainties inherent in estimating construction costs, it is difficult to evaluate accurately the total funds required to complete a project and the related loan-to-value ratio. This type of lending also typically involves higher loan principal amounts and is often concentrated with a small number of builders.
Construction lending involves additional risks when compared to permanent residential lending because funds are advanced upon the security of the project, which is of uncertain value before its completion. Because of the uncertainties inherent in estimating construction costs, it is difficult to evaluate accurately the total funds required to complete a project and the related loan-to-value ratio.
Our construction loans are based upon our estimates of costs to complete a project and the value of the completed project. Underwriting is focused on the borrowers’ financial strength, credit history and demonstrated ability to produce a quality product and effectively market and manage its operations.
Underwriting is focused on the borrowers’ financial strength, credit history and demonstrated ability to produce a quality product and effectively market and manage its operations. All construction loans for which the builder does not have a binding purchase agreement must be approved by our internal loan committee.
However, our loans for the construction of one- to-four-family residential properties may convert to permanent residential real estate loans. Loans can be made with a maximum loan-to-value ratio of 75% of the appraised market value upon completion of the project or a maximum loan-to-value ratio of 50% for raw land.
Loans can be made with a maximum loan-to-value ratio of 75% of the appraised market value upon completion of the project or a maximum loan-to-value ratio of 50% for raw land. Before making a commitment to fund a commercial construction loan, we require an appraisal of the property by an independent licensed appraiser.
However, we purchase participation interests primarily in commercial real estate and multi-family loans where we are not the lead lender. We underwrite our participation interest in the loans that we purchase according to our own underwriting criteria and procedures.
We generally do not purchase whole loans from third parties other than the one- to four-family residential real estate loans described above. However, we purchase participation interests primarily in commercial real estate and multi-family loans where we are not the lead lender.
We may generally exclude from our income 100% of dividends received from Bogota Savings Bank as a member of the same affiliated group of corporations. Audit of Tax Returns. Bogota Savings Bank’s federal income tax returns and New Jersey State income tax returns have not been audited in the last three years.
At December 31, 2024 , Bogota Savings Ban k had $2.4 million of capital loss carryovers that expire in five years. Corporate Dividends. We may generally exclude from our income 100% of dividends received from Bogota Savings Bank as a member of the same affiliated group of corporations. Audit of Tax Returns.
The interest rate is generally adjustable based on an index rate, typically the prime interest rate as published in The Wall Street Journal , plus a margin. At the end of the construction phase, the loan generally converts to a permanent commercial real estate mortgage loan, but in some cases it may be payable in full.
At the end of the construction phase, the loan generally converts to a permanent commercial real estate mortgage loan, but in some cases it may be payable in full. However, our loans for the construction of one- to-four-family residential properties may convert to permanent residential real estate loans.
These loans are generally secured by accounts receivable, inventory or other business assets, and we may support this collateral with liens on real property. At December 31, 2023, commercial and industrial loans totaled $6.7 million, or 0.9% of total loans. Commercial lending products include revolving lines of credit and term loans.
We offer commercial loans and adjustable-rate lines of credit up to $500,000 to small and medium-sized businesses in our market area. These loans are generally secured by accounts receivable, inventory or other business assets, and we may support this collateral with liens on real property.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeA deterioration in economic conditions could result in the following consequences, any of which could have a material adverse effect on our business, financial condition, liquidity and results of operations: ● demand for our products and services may decrease; ● loan delinquencies, problem assets and foreclosures may increase, which may require an increase to our allowance for credit losses; ● collateral for loans, especially real estate, may decline in value, thereby reducing customers’ future borrowing power, and reducing the value of assets and collateral associated with existing loans; ● the value of our securities portfolio may decrease; and/or ● the net worth and liquidity of loan guarantors may decrease, thereby impairing their ability to honor commitments made to us.
Biggest changeEconomic conditions, especially local conditions, could have the following consequences, any of which could have a material adverse effect on our business, financial condition, liquidity and results of operations: ● demand for our products and services may decrease; ● loan delinquencies, problem assets and foreclosures may increase; ● our allowance for credit losses may increase; ● the value of our securities portfolio may decrease; and/or ● the net worth and liquidity of loan guarantors may decrease, thereby impairing their ability to honor commitments made to us. 27 Table of Contents Risks Related to Our Funding Our inability to generate core deposits could have an adverse effect on our net interest margin and profitability or may cause us to rely more heavily on wholesale funding strategies for liquidity needs.
If we are not able to increase our lower-cost transactional deposits, we may be forced to continue to pay higher costs for certificates of deposit, which would adversely affect our operating margins and profitability, or to seek other sources of funds, including other certificates of deposit, Federal Home Loan Bank advances, brokered deposits and lines of credit to meet the borrowing and deposit withdrawal requirements of our customers.
If we are not able to increase our lower-cost transactional deposits, we may be forced to continue to pay higher costs for certificates of deposit, which would adversely affect our operating margins an d profitability, or to seek other sources of funds, including other certificates of deposit, Federal Home Loan Bank advances, brokered deposits and lines of credit to meet the borrowing and deposit withdrawal requirements of our customers.
Future declines in the real estate values in northern and central New Jersey could significantly impair the value of the collateral securing our loans and our ability to sell the collateral upon foreclosure for an amount necessary to satisfy the borrower’s obligations to us.
Future declines in the real estate values in northern and central New Jersey could significantly impair the value of t he collateral securing our loans and our ability to sell the collateral upon foreclosure for an amount necessary to satisfy the borrower’s obligations to us.
Repayment of commercial and multi-family real estate loans generally depends, in large part, on sufficient income from the property or business to cover operating expenses and debt service. Commercial and multi-family real estate loans typically involve larger loan balances to single borrowers or groups of related borrowers compared to one- to four-family residential mortgage loans.
Repayment of commercial and multi-family real estate loans generally depends, in large part, on sufficient income from the property or business to cover operating expenses and debt service. Commercial and multi-family real estate loans typically involve larger loan balances to single borrowers or groups of related borrowers compared to one- to four-family residential mort gage loans.
An institution will be subject to limitations on paying dividends, repurchasing its shares, and paying discretionary bonuses, if its capital levels fall below the buffer amount.
An institution will be subject to limitations on paying dividends, repurchasing its stock, and paying discretionary bonuses, if its capital levels fall below the buffer amount.
A decline in the estimated fair value of this portfolio will result in a decline in reported stockholders’ equity, as well as book value per common share. The decrease will occur even though the securities are not sold. Risks Related to Economic Conditions Inflation can have an adverse impact on our business and on our customers.
Changes in the estimated fair value of this portfolio will result in a proportional changes in reported stockholders’ equity, as well as book value per common share. These changes will occur even though the securities are not sold. Risks Related to Economic Conditions Inflation can have an adverse impact on our business and on our customers.
At December 31, 2023, approximately $710.8 million, or 99.1% of our total loan portfolio, was secured by real estate, most of which is located in our primary lending market of Bergen, Essex, Monmouth, Morris and Ocean Counties in New Jersey.
At December 31, 2024 , approximately $708.1 million, or 99.1% of our total loan portfolio, was secured by real estate, most of which is located in our primary lending market of Bergen, Essex, Monmouth, Morris and Ocean Counties in New Jersey.
Accordingly, any new branch can be expected to negatively impact our earnings until the branch attracts a sufficient number of deposits and loans to offset expenses. We cannot assure you that if we open new branches, they will be successful even after they have been established. Acquisitions may disrupt our business and dilute shareholder value.
Accordingly, any new branch can be expected to negatively impact our earnings until the branch attracts a sufficient number of deposits and loans to offset expenses. We cannot assure you that if we open new branches, they will be successful even after they have been established.
Acquiring other banks may have an adverse effect on our financial results and may involve various other risks, including, among other things: difficulty in estimating the value of the target institution; payment of a premium over book and market values that may dilute our tangible book value and earnings per share in the short and long term; potential exposure to unknown or contingent tax or other liabilities; exposure to potential asset quality problems; difficulty and expense of integrating the operations and personnel of the target institution; risk that the acquired business will not perform according to management’s expectations because of our inability to realize projected revenue increases, cost savings, improved geographic or product presence, or other projected benefits; potential disruptions to our business; potential diversion of management's time and attention; and the possible loss of key employees and customers of the target institution.
Acquiring other banks may have an adverse effect on our financial results and may involve various other risks, including, among other things: difficulty in estimating the value of the target institution; payment of a premium over book and market values that may dilute our tangible book value and earnings per share in the short and long term; potential exposure to unknown or contingent tax or other liabilities; exposure to potential asset quality problems; difficulty and expense of integrating the operations and personnel of the target institution; risk that the acquired business will not perform according to management’s expectations because of our inability to realize projected revenue increases, cost savings, improved geographic or product presence, or other projected benefits; potential disruptions to our business; potential diversion of management's time and attention; and the possible loss of key employees and customers of the target institution. 28 Table of Contents Risks Related to Our Securities Portfolio Our investments in corporate and municipal debt securities obligations expose us to additional credit risks, which could adversely affect our financial condition and results of operations.
If our banking deposits that we receive from municipalities were lost within a short period of time, it could negatively impact our liquidity and earnings. As of December 31, 2023, we held $48.0 million of deposits from municipalities in our primary market area in New Jersey.
If our banking deposits that we receive from municipalities were lost within a short period of time, it could negatively impact our liquidity and earnings. As of December 31, 2024 , we he ld $30.7 million of deposits from municipalities in our primary market area in New Jersey.
At December 31, 2023, $175.4 million, or 24.5% of our loan portfolio, consisted of commercial and multi-family real estate loans. We are committed to increasing this type of lending. However, commercial and multi-family real estate loans generally expose a lender to a greater risk of loss than one- to four-family residential loans.
At December 31, 2024 , $192.2 million, or 26.9% of our loan portfolio, consisted of commercial and multi-family real estate loans. We are committed to increasing this type of lending. However, commercial and multi-family real estate loans generally expose a lender to a greater risk of loss than one- to four-family residential loans.
Our business strategy includes pursuing acquisition opportunities of other financial institutions. We would seek acquisition partners that offer us either significant market presence or the potential to expand our market footprint and improve profitability through economies of scale or expanded services.
We would seek acquisition partners that offer us either significant market presence or the potential to expand our market footprint and improve profitability through economies of scale or expanded services.
At December 31, 2023, the Company maintained a debt securities portfolio of $141.5 million, of which $68.9 million was classified as available-for-sale. The estimated fair value of the available-for-sale debt securities portfolio may change depending on the credit quality of the underlying issuer, market liquidity, changes in interest rates and other factors.
At December 31, 2024 , the Company maintained a debt securities portfolio of $140.3 million, all of which w as classified as available-for-sale. The estimated fair value of the available-for-sale debt securities portfolio may change depending on the credit quality of the underlying issuer, market liquidity, changes in interest rates and other factors.
Moreover, a significant decline in general economic conditions, caused by a pandemic, inflation, recession, acts of terrorism, an outbreak of hostilities or other international or domestic calamities, unemployment or other factors beyond our control could further negatively affect our financial performance.
A significant decline in general economic conditions caused by inflation, recession, acts of terrorism, civil unrest, an outbreak of hostilities or other international or domestic calamities, an epidemic or pandemic, unemployment or other factors beyond our control could negatively affect our financial results and our banking operations.
Achieving our organic growth targets requires us to attract customers that currently bank at other financial institutions in our market. Our ability to grow successfully will depend on a variety of factors, including our ability to attract and retain experienced bankers, the availability of attractive business opportunities and competition from other financial institutions in our market area.
Our ability to grow successfully will depend on a variety of factors, including our ability to attract and retain experienced bankers, the availability of attractive business opportunities and competition from other financial institutions in our market area.
During the year ended December 31, 2023, we incurred other comprehensive losses of $140,000 related to net changes in unrealized holding losses in the available-for-sale investment securities portfolio and had total accumulated other comprehensive loss of $6.5 million.
During the year ended December 31, 2024 , we booked other comprehensive gains of $2.6 million relate d to net changes in unrealized holding losses in the available-for-sale investment securities portfolio and had total accumulated other comprehensive loss of $3.6 million.
Our non-owner occupied commercial real estate loans may expose us to increased credit risk. At December 31, 2023, $70.3 million, or 9.8% of our total loan portfolio, consisted of loans secured by non-owner occupied commercial real estate loans. At December 31, 2023, $494,000, or 0.7% of these loans were past due.
Our non-owner occupied commercial real estate loans may expose us to increased credit risk. At December 31, 2024 , $87.3 million, or 12.2% of our total loan portfolio, consisted of loans secured by non-owner occupied commercial real estate loans. At December 31, 2024 , $1.2 million, or 1.02% of these loans were past due.
The Company has no history of credit losses and therefore used the Weighted Average Remaining Maturity (WARM) method and relied on the use of qualitative factors to determine future losses.
The Company has no history of credit losses and therefore used the Weighted Average Remaining Maturity (WARM) method and relied on the use of qualitative factors to determine future losses. Our concentrations of loans in certain industries could have adverse effects on credit quality .
The implementation of the Current Expected Credit Losses, or CECL, standard became effective for Bogota Financial Corp. on January 1, 2023. CECL requires financial institutions to determine periodic estimates of lifetime expected credit losses on loans, and recognize the expected credit losses as allowances for credit losses.
CECL requires financial institutions to determine periodic estimates of lifetime expected credit losses on loans, and recognize the expected credit losses as allowances for credit losses.
Certificates of deposit comprised $493.3 million or 78.9% of our total deposits at December 31, 2023. Certificates of deposit due within one year of December 31, 2023 totaled $430.8 million, or 68.9% of total deposits. This included $53.3 million of brokered deposits, which represented 8.5% of total deposits.
Certificates of depos it comprised $493.3 million or 76.8% of our total deposits at December 31, 2024 . Certificates of deposit due within one year of December 31, 2024 totaled $450.1 million, or 70.1% of total deposits. This included $80.2 million of brokered deposits, which represented 12.5% of total deposits.
The application of these more stringent capital requirements, among other things, could result in lower returns on equity and result in regulatory actions if we were unable to comply with such requirements. Non-compliance with the USA PATRIOT Act, Bank Secrecy Act, or other laws and regulations could result in fines or sanctions.
The application of these capital requirements could, among other things, require us to maintain higher capital resulting in lower returns on equity, raise capital and result in regulatory actions if we are unable to comply with such requirements.
Our concentrations of loans in certain industries could have adverse effects on credit quality . As of December 31, 2023, the Company’s loan portfolio included loans to: (i) lessors of office buildings of $58.0 million, or 8.1% of total loans; and (ii) borrowers in the retail industry of $70.1 million, or 9.8% of total loans.
As of December 31, 2024 , the Company’s loan portfolio included loans to: (i) lessors of office buildi ngs of $25.1 million, or 3.5% of total loans; and (ii) borrowers in the retail industry of $63.8 million, or 8.9% of to tal loans.
While we have developed policies and procedures designed to assist in compliance with these laws and regulations, these policies and procedures may not be effective in preventing violations of these laws and regulations. 31 Table of Contents Changes in accounting standards could affect reported earnings.
Failure to comply with these regulations could result in fines or sanctions, including restrictions on conducting acquisitions or establishing new branches. While we have developed policies and procedures designed to assist in compliance with these laws and regulations, these policies and procedures may not be effective in preventing violations of these laws and regulations.
The USA PATRIOT and Bank Secrecy Acts require financial institutions to develop programs to prevent financial institutions from being used for money laundering and terrorist activities. If such activities are detected, financial institutions are obligated to file suspicious activity reports with the U.S. Treasury’s Office of Financial Crimes Enforcement Network.
If such activities are detected, financial institutions are obligated to file suspicious activity reports with the U.S. Treasury’s Office of Financial Crimes Enforcement Network. These rules require financial institutions to establish procedures for identifying and verifying the identity of customers that open new financial accounts.
Some of these impacts might occur even in the absence of an actual default but as a consequence of extended political negotiations around the threat of such a default and a government shutdown. 27 Table of Contents Risks Related to Our Funding Our inability to generate core deposits could have an adverse effect on our net interest margin and profitability or may cause us to rely more heavily on wholesale funding strategies for liquidity needs.
Our inability to generate core deposits could have an adverse effect on our net interest margin and profitability or may cause us to rely more heavily on wholesale funding strategies for liquidity needs. Liquidity is essential to our business.
If we do not manage our growth effectively, we may not be able to achieve our business plan, which would have an adverse effect on our financial condition and results of operations. 28 Table of Contents Risks Related to Our Securities Portfolio Our investments in corporate and municipal debt securities obligations expose us to additional credit risks, which could adversely affect our financial condition and results of operations.
If we do not manage our growth effectively, we may not be able to achieve our business plan, which would have an adverse effect on our financial condition and results of operations. Acquisitions may disrupt our business and dilute shareholder value. Our business strategy includes pursuing acquisition opportunities.
Federal regulations establish minimum capital requirements for insured depository institutions, including minimum risk-based capital and leverage ratios and define what constitutes “capital” for calculating these ratios.
We are subject to stringent capital requirements, which may adversely impact our return on equity, require us to raise additional capital, or restrict us from paying dividends or repurchasing shares. Federal regulations establish minimum capital requirements for insured depository institutions, including minimum risk-based capital and leverage ratios and define what constitutes “capital” for calculating these ratios.
Any change in such regulation and oversight, whether in the form of regulatory policy, new regulations, legislation or supervisory action, may have a material impact on our operations. We are subject to stringent capital requirements, which may adversely impact our return on equity, require us to raise additional capital, or restrict us from paying dividends or repurchasing shares.
Any change in such regulation and oversight, whether in the form of regulatory policy, new regulations, legislation or supervisory action, may have a material impact on our operations. The fiscal, monetary and regulatory policies of the federal government and its agencies could adversely affect our business, financial condition and results of operations.
Our assets decreased $11.8 million, or 1.2%, from $951.1 million at December 31, 2022 to $939.3 million at December 31, 2023, primarily due to decreases in loans receivable and investments. Over the next several years, we expect to experience moderate organic growth in our total assets and deposits, and the scale of our operations.
The increases were offset by decreases in loans and investments. Over the next several years, we expect to experience moderate organic growth in our total assets and deposits, and the scale of our operations. Achieving our organic growth targets requires us to attract customers that currently bank at other financial institutions in our market.
Removed
Upon adoption of the CECL method of calculating the allowance for credit losses on January 1, 2023, the Bank recorded a one-time decrease, net of tax, in retained earnings of $220,000, an increase to the allowance for credit losses of $157,000 and an increase in the reserve for unfunded liabilities of $152,000.
Added
Changes to trade policies and tariffs can have an adverse impact on our business and our customers. Changes in trade policies, including the imposition of tariffs or the escalation of a trade war, could negatively impact the economic conditions in the markets we serve.
Removed
Further, a U.S. government debt default would have a material adverse impact on our business and financial performance, including a decrease in the value of Treasury bonds and other government securities held by us, which could negatively impact the Bank’s capital position and its ability to meet regulatory requirements.
Added
Our customers—particularly local businesses engaged in agriculture, manufacturing, and retail—may face higher costs for imported goods and materials, reduced export demand, and supply chain disruptions due to increased tariffs. These challenges could lead to lower revenues, reduced profitability, and potential layoffs, all of which may impair our customers’ ability to meet their financial obligations.
Removed
Other negative impacts could be volatile capital markets, an adverse impact on the U.S. economy and the U.S. dollar, as well as increased default rates among borrowers in light of increased economic uncertainty.
Added
Furthermore, prolonged trade tensions and economic uncertainty could lead to market volatility, declining asset values, and weakened consumer confidence. If our customers experience financial stress, we could see an increase in loan delinquencies and credit losses, negatively affecting our asset quality and overall financial performance.
Removed
These rules require financial institutions to establish procedures for identifying and verifying the identity of customers that open new financial accounts. Failure to comply with these regulations could result in fines or sanctions, including restrictions on conducting acquisitions or establishing new branches.
Added
Additionally, any decline in local economic activity could reduce loan demand, deposit growth, and fee income, which are critical to our long-term success. While we actively monitor economic and policy developments, we cannot predict the outcome of trade negotiations or the full impact of tariffs and trade restrictions on our business, customers, and the broader economy.
Removed
Risks Related to the COVID-19 Pandemic The COVID-19 pandemic could adversely affect the Company ’ s business activities, financial condition, and results of operations.
Added
Any adverse effects from tariffs or a trade war could materially and negatively impact our financial condition, results of operations, and future growth prospects. Interruption of our customers' supply chains could negatively impact their business and operations and impact their ability to repay their loans.
Removed
Global health concerns relating to the COVID-19 pandemic and related government actions taken to reduce the spread of the virus could harm the Bank’s business and that of its customers, in particular, small to medium-sized business customers.
Added
Any material interruption in our customers’ supply chains, such as a material interruption of the resources required to conduct their business resulting from interruptions in service by third-party providers, trade restrictions, such as increased tariffs or quotas, embargoes or customs restrictions, social or labor unrest, natural disasters, epidemics or pandemics or political disputes and military conflicts, that cause a material disruption in our customers' supply chains, could have a negative impact on their business and ability to repay their borrowings with us.
Removed
A decline in economic conditions generally and a prolonged negative impact on small to medium-sized businesses, in particular, due to the COVID-19 pandemic could result in a material adverse effect on the Company’s business, financial condition, and results of operations. ITEM 1B. Unresolved Staff Comments None.
Added
In the event of disruptions in our customers’ supply chains, the labor and materials they rely on in the ordinary course of business may not be available at reasonable rates or at all.
Added
We rely on our ability to generate deposits and effectively manage the repayment and maturity schedules of our loans to ensure that we have adequate liquidity to fund our operations. An inability to raise funds through deposits, borrowings, the sale of loans and other sources could have a substantial negative effect on our liquidity.
Added
Our most important source of funds is deposits. Deposit balances can decrease when customers perceive alternative investments as providing a better risk/return tradeoff. If customers move money out of deposits, we may lose a relatively low-cost source of funds, increasing our funding costs and reducing our net interest income and net income.
Added
Depending on the capitalization and regulatory treatment of depository institutions, including whether an institution is subject to a supervisory prompt corrective action directive, certain additional regulatory restrictions and prohibitions may apply, including restrictions on interest rates paid on deposits and on the acceptance of brokered deposits.
Added
Significant deposit withdrawals could materially reduce our liquidity, and, in such an event, we may be required to replace such deposits with higher-costing borrowings. Other primary sources of funds consist of cash flows from operations and sales of investment securities and borrowings from the FHLB of New York and the Federal Reserve.
Added
We also may borrow funds from third-party lenders, such as other financial institutions.
Added
Our access to funding sources in amounts adequate to finance or capitalize our activities, or on terms that are acceptable to us, could be impaired by factors that affect us directly or the financial services industry or economy in general, such as disruptions in the financial markets or negative views and expectations about the prospects for the financial services industry.
Added
Our liquidity is also affected by a decrease in the sale of mortgage loans as a result of our decision to retain more mortgage loans in the portfolio, higher market interest rates negatively impacting originations, a downturn in our markets or by one or more adverse regulatory actions against us.
Added
A lack of liquidity could also attract increased regulatory scrutiny and potential restraints imposed on us by regulators. At December 31, 2024, the Bank had approximately $211.3 million in available liquidity, including $52.2 million in cash, $105.1 million in secured borrowing capacity at the FHLB, and $54.0 million in unsecured lines of credit.
Added
This available liquidity is 474.0% the uninsured and unsecured deposit balance of $44.6 million.
Added
Any decline in available funding could adversely impact our ability to originate loans, invest in securities, meet our expenses or fulfill obligations such as repaying our borrowings or meeting deposit withdrawal demands, any of which could have a material adverse impact on our liquidity, business, financial condition and results of operations.
Added
Our assets increased $32.2 million, or 3.4%, from $939.3 million at December 31, 2023 to $971.5 million at December 31, 2024 , primarily due to increases in cash and cash equivalents and right of use assets connected with new leases signed as part of the Bank's sale leaseback transaction which was completed in the 4th quarter of 2024.
Added
In addition to being affected by general economic conditions, our earnings and growth are affected by the policies of the Federal Reserve Board. An important function of the Federal Reserve Board is to regulate the money supply and credit conditions.
Added
Among the instruments used by the Federal Reserve Board to implement these objectives are open market purchases and sales of U.S. government securities, adjustments of the discount rate and changes in banks’ reserve requirements against bank deposits. These instruments are used in varying combinations to influence overall economic growth and the distribution of credit, bank loans, investments and deposits.
Added
Their use also affects interest rates charged on loans or paid on deposits. Their use also affects interest rates charged on loans or paid on deposits. The Federal Reserve Board’s policies determine in large part the cost of funds for lending and investing and the return earned on those loans and investments, both of which affect our net interest margin.
Added
Its policies can also adversely affect borrowers, potentially increasing the risk that they may fail to repay their loans. The monetary policies and regulations of the Federal Reserve Board have had a significant effect on the overall economy and the operating results of financial institutions in the past and are expected to continue to do so in the future.
Added
Additionally, Congress and the administration through executive orders controls fiscal policy through decisions on taxation and expenditures. Depending on industries and markets involved, changes to tax law and increased or reduced public expenditures could affect us directly or the business operations of our customers.
Added
Changes in Federal Reserve Board and other governmental policies, fiscal policy, and our regulatory environment generally are beyond our control, and we are unable to predict what changes may occur or the manner in which any future changes may affect our business, financial condition and results of operations.
Added
Furthermore, the imposition of additional liquidity requirements could result in our having to lengthen the term of our funding, restructure our business models, and/or increase our holdings of liquid assets.
Added
Implementation of changes to asset risk weightings for risk-based capital calculations, items included or deducted in calculating regulatory capital and/or additional capital conservation buffers could result in management modifying its business strategy, and could limit our ability to make distributions, including paying out dividends or buying back shares.
Added
Non-compliance with the USA PATRIOT Act, Bank Secrecy Act, or other laws and regulations could result in fines or sanctions. The USA PATRIOT and Bank Secrecy Acts require financial institutions to develop programs to prevent financial institutions from being used for money laundering and terrorist activities.
Added
We are an emerging growth company, and any decision on our part to comply only with certain reduced reporting and disclosure requirements applicable to emerging growth companies could make our common stock less attractive to investors.
Added
We are an emerging growth company, and we expect that will cease to be an emerging growth company effective December 31, 2025, which is the end of the fifth year after the date of the first sale of our common stock.
Added
For as long as we continue to be an emerging growth company, we may choose to take advantage of exemptions from various reporting requirements applicable to other public companies, including, but not limited to, reduced disclosure obligations regarding executive compensation in our proxy statements, and exemptions from the requirements of holding a non-binding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved.
Added
As an emerging growth company, we also are not subject to Section 404(b) of the Sarbanes-Oxley Act of 2002, which would require that our independent auditors review and attest as to the effectiveness of our internal control over financial reporting.
Added
We have also elected to use the extended transition period to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. Accordingly, our financial statements may not be comparable to the financial statements of public companies that comply with such new or revised accounting standards.
Added
Investors may find our common stock less attractive since we have chosen to rely on these exemptions. If some investors find our common stock less attractive as a result of any choices to reduce future disclosure, there may be a less active trading market for our common stock and the price of our common stock may be more volatile.
Added
We are a smaller reporting company and, even if we no longer qualify as an emerging growth company, any decision on our part to comply only with certain reduced reporting and disclosure requirements applicable to smaller reporting companies could make our common stock less attractive to investors.
Added
In addition to qualifying as an emerging growth company, we qualify as a “smaller reporting company” under the federal securities laws.
Added
For as long as we continue to be a smaller reporting company, we may choose to take advantage of exemptions from various reporting requirements applicable to public companies that are not available to companies that are not smaller reporting companies, including, but not limited to, reduced financial disclosure obligations and reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements.
Added
If some investors find our common stock less attractive as a result of any choices to reduce future disclosure, there may be a less active trading market for our common stock and the price of our common stock may be more volatile. 31 Table of Contents Changes in accounting standards could affect reported earnings.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeThe information security program, policies, and standards are managed by the Vice President of Information Security Systems ("VP, ISS"), who leads the enterprise wide technology risk management function. The VP, ISS acts as the second line of defense and provides risk oversight for the Bank’s technology operating infrastructure and operations.
Biggest changeThe information security program, policies, and standards are managed by the Bank's Information Security Officer (the "ISO"), who leads the enterprise wide technology risk management function. The ISO acts as the second line of defense and provides risk oversight for the Bank’s technology operating infrastructure and operations.
ITEM 1C. Cybersecurity Our information security program is managed through a dynamic enterprise-wide cybersecurity strategy, policies, standards, architecture, and processes. The Bank relies upon a formalized internal Information and Cybersecurity Program (“the Program”) to safeguard confidential information, maintain the confidentiality of our customers’ data and to ensure the integrity of financial transactions.
ITEM 1C. Cybersecurity Our information security program is managed through a dynamic enterprise-wide cybersecurity strategy, policies, standards, architecture, and processes. The Bank relies upon a formalized internal Information and Cybersecurity Program (the "Program”) to safeguard confidential information, maintain the confidentiality of our customers’ data and to ensure the integrity of financial transactions.
As part of our governance structure, the Board of Directors, Chief Executive Officer and Director of IT play an active role in overseeing our cybersecurity program. Regular briefings on cyber risk management and incident response activities are conducted, ensuring a high level of governance and accountability in addressing cybersecurity concerns.
As part of our governance structure, the Board of Directors, Chief Executive Officer and VP of IT play an active role in overseeing our cybersecurity program. Regular briefings on cyber risk management and incident response activities are conducted, ensuring a high level of governance and accountability in addressing cybersecurity concerns.
The Director of IT oversees a team of internal and external security professionals in safeguarding our critical data, systems, and assets against threats, breaches, and attacks. The Director of IT is also responsible for ensuring the confidentiality, integrity, and availability of information assets.
The VP of IT oversees a team of internal and external security professionals in safeguarding our critical data, systems, and assets against threats, breaches, and attacks. The VP of IT is also responsible for ensuring the confidentiality, integrity, and availability of information assets.
The Bank’s cybersecurity operations function is headed by the Director of IT who is responsible for managing information security risks by developing and implementing information security strategies, architecture, and procedures and acts as the first line of defense.
The Bank’s cybersecurity operations function is headed by the VP of IT who is responsible for managing information security risks by developing and implementing information security strategies, architecture, and procedures and acts as the first line of defense.
The VP, ISS function manages testing of technology controls, technology risk assessments, risk reporting, information security third-party due diligence, monitoring the implementation of risk mitigation actions, and tracking their effectiveness over time. The Bank's internal auditors and Board of Directors act as the third line of defense, providing the independent assurance function.
The ISO manages testing of technology controls, technology risk assessments, risk reporting, information security third-party due diligence, monitoring the implementation of risk mitigation actions, and tracking their effectiveness over time. The Bank's internal auditors and Board of Directors act as the third line of defense, providing the independent assurance function.
Regular assessments, testing, audits, and training of all employees are conducted to adapt to emerging threats and enhance our ability to safeguard the interests of our customers. 33 Table of Contents
Regular assessments, testing, audits, and training of all employees are conducted to adapt to emerging threats and enhance our ability to safeguard the interests of our customers. 34 Table of Contents
The Incident Response Plan is coordinated through the Director of Information Technology (“Director of IT”) and key members of executive management who are responsible for escalation as part of the Plan. We use a layered defense management approach to managing cybersecurity.
The Incident Response Plan is coordinated through the Vice President of Information Technology (“VP of IT”) and key members of executive management who are responsible for escalation as part of the Plan. We use a layered defense management approach to managing cybersecurity.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeThe following table sets forth information regarding our offices as of December 31, 2023: Location Leased or Owned Year Acquired or Leased Net Book Value of Real Property (In thousands) Branch Offices: 819 Teaneck Road Teaneck, NJ 07666 Owned 2004 $3,420 60 East Main Street Bogota, NJ 07603 Owned 1941 $169 181 Boulevard Hasbrouck Heights, NJ 07604 Owned 2020 $2,484 1719 Route 10 East Parsippany, NJ 07054 Leased 2021 $109 5527 Berkshire Valley Road Oak Ridge, NJ 07438 Owned 2021 $159 1039 South Orange Road Newark, NJ 07106 Owned 2021 $1,146 Other Offices: 510 Warren Ave Spring Lake, NJ 07762 Leased 2021 $10 (used as a loan production office) We believe that the current facilities are adequate to meet our present and foreseeable needs, subject to possible future expansion .
Biggest changeThe following table sets forth information regarding our offices as of December 31, 2024 : Location Leased or Owned Year Acquired or Leased Net Book Value of Real Property (In thousands) Branch Offices: 819 Teaneck Road Teaneck, NJ 07666 Owned 2004 $1,887 60 East Main Street Bogota, NJ 07603 Leased 2024 $11 181 Boulevard Hasbrouck Heights, NJ 07604 Leased 2024 $233 1719 Route 10 East Parsippany, NJ 07054 Leased 2021 $66 5527 Berkshire Valley Road Oak Ridge, NJ 07438 Owned 2021 $421 1039 South Orange Road Newark, NJ 07106 Leased 2024 $28 558 E Crescent Avenue Upper Saddle River, NJ 07458 Leased 2023 $439 Other Offices: 510 Warren Ave Spring Lake, NJ 07762 Leased 2021 $6 (used as a loan production office) We believe that the current facilities are adequate to meet our present and foreseeable needs, subject to possible future expansion .
ITEM 2. Properties As of December 31, 2023, the net book value of our land, building and equipment was $7.7 million.
ITEM 2. Properties As of December 31, 2024 , the net book value of our land, building and equipment w as $4.6 mill ion.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeITEM 3. Legal Proceedings We are not involved in any pending legal proceedings as a defendant other than routine legal proceedings in the ordinary course of business. At December 31, 2023, we were not involved in any legal proceedings the outcome of which management believes would be material to our financial condition or results of operations.
Biggest changeITEM 3. Legal Proceedings We are not involved in any pending legal proceedings as a defendant other than routine legal proceedings in the ordinary course of business. At December 31, 2024 , we were not involved in any legal proceedings the outcome of which management believes would be material to our financial condition or results of operations.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

4 edited+1 added−0 removed2 unchanged
Biggest changeAs of December 31, 2023, 216,837 shares have been repurchased under this program at a cost of $1.6 million. The following table provides information on repurchases by the Company of its common stock under the Company's Board approved program during the fourth quarter of 2023.
Biggest changeThe following table provides information on repurchases by the Company of its common stock under the Company's Board approved program during the fourth quarter of 2024.
ITEM 5. Market for Registrant ’ s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Market for Registrant ’ s Common Equity The common stock of Bogota Financial Corp. is listed on The NASDAQ Capital Market under the symbol “BSBK”. At March 28, 2024, Bogota Financial Corp. had approximately 1,975 stockholders of record.
ITEM 5. Market for Registrant ’ s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Market for Registrant ’ s Common Equity The common stock of Bogota Financial Corp. is listed on The NASDAQ Capital Market under the symbol “BSBK”. At March 27, 2025, B ogota Financial Corp. had approximately 595 stockholders of record.
There were no sales of unregistered securities during the quarter ended December 31, 2023. On May 24, 2023, the Company announced it had received regulatory approval for the repurchase of up to 249,920 shares of its common stock, which was approximately 5% of its then outstanding common stock (excluding shares held by Bogota Financial, MHC).
There we re no sa les of unregistered securities during the quarter ended December 31, 2024 . On April 24, 2024, the Company announced it had received regulatory approval for the repurchase of u p to 237,090 shares of its common stock, or approximately 5% of its then outstanding common stock (excluding shares held by Bogota Financial, MHC).
ISSUER PURCHASES OF EQUITY SECURITIES Period Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs October 1 - 31, 2023 38,600 $ 7.41 38,600 89,019 November 1 - 30, 2023 20,000 7.19 20,000 69,019 December 1 - 31, 2023 35,936 7.64 35,936 33,083 Total 94,536 $ 7.45 94,536
ISSUER PURCHASES OF EQUITY SECURITIES Period Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs October 1 - 31, 2024 9,262 $ 8.03 9,262 64,038 November 1 - 30, 2024 1,863 8.00 1,863 62,175 December 1 - 31, 2024 13,132 7.90 13,132 49,043 Total 24,257 $ 7.96 24,257 ITEM 6.
Added
The repurchase program does not have a scheduled expiration date and the Board of Directors may suspend or discontinue the program at any time. As of December 31, 2024 , 188,047 shares have been repurchased pursuant to the program at a cost of $1.4 million.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

86 edited+19 added−16 removed59 unchanged
Biggest changeFor the Years Ended December 31, 2023 2022 Average Balance Interest and Dividends Yield/ Cost Average Balance Interest and Dividends Yield/Cost (Dollars in thousands) Assets: Cash and cash equivalents $ 10,868 $ 568 5.23 % $ 25,044 $ 117 0.47 % Loans 713,799 32,046 4.49 638,679 26,264 4.11 Securities 144,880 4,162 2.87 167,987 3,678 2.19 Other interest-earning assets 6,389 504 7.90 5,677 288 5.05 Total interest-earning assets 875,936 37,280 4.26 837,387 30,347 3.62 Non-interest-earning assets 54,925 52,525 Total assets $ 930,861 $ 889,912 Liabilities and Equity: NOW and money market accounts $ 85,663 1,399 1.63 $ 140,473 787 0.56 Savings accounts 48,351 580 1.20 62,626 184 0.29 Certificates of deposit 498,129 16,045 3.22 394,593 4,136 1.05 Total interest-bearing deposits 632,143 18,024 2.85 597,692 5,107 0.85 Federal Home Loan Bank advances (1) 116,816 4,283 3.67 102,458 2,162 2.11 Total interest-bearing liabilities 748,959 22,307 2.98 700,150 7,269 1.04 Non-interest-bearing deposits 38,636 41,501 Other non-interest-bearing liabilities 4,627 3,914 Total liabilities 792,222 745,565 Total equity 138,639 144,347 Total liabilities and equity $ 930,861 $ 889,912 Net interest income $ 14,973 $ 23,078 Interest rate spread (2) 1.28 % 2.58 % Net interest margin (3) 1.71 % 2.76 % Average interest-earning assets to average interest-bearing liabilities $ 126,977 $ 137,237 (1) Cash flow hedges are used to manage interest rate risk.
Biggest changeFor the Years Ended December 31, 2024 2023 Average Balance Interest and Dividends Yield/ Cost Average Balance Interest and Dividends Yield/Cost (Dollars in thousands) Assets: Cash and cash equivalents $ 10,197 $ 606 5.94 % $ 10,868 $ 568 5.23 % Loans 713,138 33,412 4.69 713,799 32,046 4.49 Securities 178,684 6,939 3.88 144,880 4,162 2.87 Other interest-earning assets 9,106 793 8.71 6,389 504 7.90 Total interest-earning assets 911,125 41,750 4.58 875,936 37,280 4.26 Non-interest-earning assets 59,511 54,925 Total assets $ 970,636 $ 930,861 Liabilities and Equity: NOW and money market accounts $ 67,561 1,359 2.01 $ 85,663 1,399 1.63 Savings accounts 43,975 821 1.87 48,351 580 1.20 Certificates of deposit 508,327 22,405 4.41 498,129 16,045 3.22 Total interest-bearing deposits 619,863 24,585 3.97 632,143 18,024 2.85 Federal Home Loan Bank advances (1) 175,997 6,614 3.76 116,816 4,283 3.67 Total interest-bearing liabilities 795,860 31,199 3.92 748,959 22,307 2.98 Non-interest-bearing deposits 31,572 38,636 Other non-interest-bearing liabilities 6,303 4,627 Total liabilities 833,735 792,222 Total equity 136,901 138,639 Total liabilities and equity $ 970,636 $ 930,861 Net interest income $ 10,551 $ 14,973 Interest rate spread (2) 0.66 % 1.28 % Net interest margin (3) 1.16 % 1.71 % Average interest-earning assets to average interest-bearing liabilities 114.48 % 116.95 % (1) Cash flow hedges are used to manage interest rate risk.
We consider a variety of factors in establishing this estimate including current economic and forecasted conditions, delinquency statistics, geographic concentrations, and the adequacy of the underlying collateral, the financial strength of the borrower, results of internal loan reviews and other relevant factors.
We consider a variety of factors in establishing this estimate including current economic and forecasted conditions, delinquency statistics, geographic concentrations, the adequacy of the underlying collateral, the financial strength of the borrower, results of internal loan reviews and other relevant factors.
Due to the interest rate environment, we have seen a decrease in demand for residential and construction loans, which have been primary drivers of our loan growth in recent periods.
Due to the interest rate environment, we have seen a decrease in demand for residential and construction loans, which have been the primary drivers of our loan growth in recent periods.
These hypothetical estimates are based upon numerous assumptions, which are subject to change, including: the nature and timing of interest rate levels including the yield curve shape, prepayments on loans and securities, deposit decay rates, pricing decisions on loans and deposits, reinvestment/replacement of asset and liability cash flows, and others.
These hypothetical estimates are based upon numerous assumptions, which are subject to change, including: the nature and timing of interest rate levels including the yield curve shape, prepayments on loans and securities, deposit decay rates, pricing decisions on loans and deposits, reinvestment/replacement of asset and liability cash flows.
We believe that we have a competitive advantage in the markets we serve because of our 130-year history in the community, our knowledge of the local marketplace and our long-standing reputation for providing superior, relationship-based customer service. We believe we can distinguish ourselves by maintaining the culture of a local community bank.
We believe that we have a competitive advantage in the markets we serve because of our over 130-year history in the community, our knowledge of the local marketplace and our long-standing reputation for providing superior, relationship-based customer service. We believe we can distinguish ourselves by maintaining the culture of a local community bank.
The Company also incorporates a one-year reasonable and supportable loss forecast period to account for the effect of forecasted economic conditions and other factors on the performance of the commercial portfolio, which could differ from historical loss experience.
The Company also incorporates a one-year reasonable and supportable loss forecast period to account for the effect of forecasted economic conditions and other factors on the performance of the portfolio, which could differ from historical loss experience.
This evaluation is inherently subjective as it requires material estimates by management that may be susceptible to significant change based on changes in economic and real estate market conditions. The evaluation has polled and individual components. The individual component relates to loans that do not share similar risk characteristics with the remaining loans in the pools that are collectively evaluated.
This evaluation is inherently subjective as it requires material estimates by management that may be susceptible to significant change based on changes in economic and real estate market conditions. The evaluation has pooled and individual components. The individual component relates to loans that do not share similar risk characteristics with the remaining loans in the pools that are collectively evaluated.
We believe that we had enough sources of liquidity to satisfy our short- and long-term liquidity needs as of December 31, 2023. While maturities and scheduled amortization of loans and securities are predictable sources of funds, deposit flows and loan sales and prepayments are greatly influenced by market interest rates, economic conditions, and competition.
We believe that we had enough sources of liquidity to satisfy our short- and long-term liquidity needs as of December 31, 2024 . While maturities and scheduled amortization of loans and securities are predictable sources of funds, deposit flows and loan sales and prepayments are greatly influenced by market interest rates, economic conditions, and competition.
We intend to take advantage of the benefits of this extended transition period. Accordingly, our financial statements may not be fully comparable to public companies that comply with such new or revised accounting standards. The following represents our critical accounting policy: Allowance for Credit Losses.
We intend to take advantage of the benefits of this extended transition period. Accordingly, our financial statements may not be fully comparable to public companies that comply with such new or revised accounting standards. The following represents our critical accounting estimate: Allowance for Credit Losses.
The preparation of these financial statements requires management to make estimates and assumptions affecting the reported amounts of assets and liabilities, income and expenses and disclosure of contingent assets and liabilities. We consider the accounting policy discussed below to be a critical accounting policy, which is presented in the notes to the consolidated financial statements.
The preparation of these financial statements requires management to make estimates and assumptions affecting the reported amounts of assets and liabilities, income and expenses and disclosure of contingent assets and liabilities. We consider the accounting estimate discussed below to be a critical accounting estimate, which is presented in the notes to the consolidated financial statements.
Other expenses include expenses for office supplies, postage, telephone, insurance and other miscellaneous operating expenses. 36 Table of Contents Income Tax Expense. Our income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities.
Other expenses include expenses for office supplies, postage, telephone, insurance and other miscellaneous operating expenses. 38 Table of Contents Income Tax Expense. Our income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities.
As a substantial percentage of our loan portfolio is collateralized by real estate, appraisals of the underlying value of property securing loans are critical in determining the amount of the allowance required for specific loans. Assumptions are instrumental in determining the value of properties.
As a substantial percentage of our loan portfolio is collateralized by real estate, appraisals of the underlying value of property securing loans are critical in determining the amount of the allowance required for specific collateral-dependent loans. Assumptions are instrumental in determining the value of properties.
The Unfunded Reserve is recognized as a liability (other liabilities in the consolidated statements of condition), with adjustments to the reserve recognized in other noninterest expense in the consolidated statements of income. The Unfunded Reserve is determined by estimating future draws and applying the expected loss rates on those draws.
The Unfunded Reserve is recognized as a liability (other liabilities in the consolidated statements of condition), with adjustments to the reserve recognized in other noninterest expense in the consolidated statements of operations. The Unfunded Reserve is determined by estimating future draws and applying the expected loss rates on those draws.
We view the growth of commercial real estate and multi-family lending as a means of increasing our interest income and the yield on our loan portfolio, and reducing the average term to repricing of our loans. We believe that local banking consolidation has created opportunities to attract talent with experience originating commercial real estate loans within our market area.
We view the growth of commercial real estate and multi-family lending as a means of increasing our interest income and the yield on our loan portfolio, and reducing the average terms of our loans. We believe that local banking consolidation has created opportunities to attract talent with experience originating commercial real estate loans within our market area.
As of December 31, 2023, net interest income simulation results indicated that its exposure over one year to changing interest rates was within our guidelines.
As of December 31, 2024 , net interest income simulation results indicated that its exposure over one year to changing interest rates was within our guidelines.
Substantially all of the collateral consists of various types of real estate, including, residential properties; commercial properties, such as retail centers, office buildings, and lodging; agriculture land; and vacant land. The reserve for unfunded commitments (the “Unfunded Reserve”) represents the expected credit losses on off-balance sheet commitments such as unfunded commitments to extend credit and standby letters of credit.
Substantially all of the collateral consists of various types of real estate, including: residential properties; commercial properties, such as apartments, retail centers, office buildings, and lodging; agriculture land; and vacant land. 37 Table of Contents The reserve for unfunded commitments (the “Unfunded Reserve”) represents the expected credit losses on off-balance sheet commitments such as unfunded commitments to extend credit and standby letters of credit.
At December 31, 2023, we also had $54.0 million in unsecured lines of credit with four correspondent banks with no outstanding balances .
At December 31, 2024 , we also had $54.0 million in unsecured lines of credit with four correspondent banks with no outstanding balances .
However, a liability is not recognized for commitments unconditionally cancellable by the Company. The Unfunded Reserve is recognized as a liability (other liabilities in the consolidated statements of condition), with adjustments to the reserve recognized in other noninterest expense in the consolidated statements of income.
However, a liability is not recognized for commitments unconditionally cancellable by the Company. The Unfunded Reserve is recognized as a liability (other liabilities in the consolidated statements of financial condition), with adjustments to the reserve recognized in other noninterest expense in the consolidated statements of operations.
The general component covers non-classified loans that share similar risk characteristics and is based on the weighted average remaining maturity and historical loss experience adjusted for qualitative factors. 38 Table of Contents Actual credit losses may be significantly more than the allowance we have established which could have a material negative effect on our financial results.
The general component covers non-classified loans that share similar risk characteristics and is based on the weighted average remaining maturity method for determining loss factors and historical loss experience adjusted for qualitative factors. Actual credit losses may be significantly more than the allowance we have established which could have a material negative effect on our financial results.
The following table presents the estimated changes in our net portfolio value that would result from changes in market interest rates as December 31, 2023. All estimated changes presented in the table are within the policy limits approved by the board of directors.
The following table presents the estimated changes in our net portfolio value that would result from changes in market interest rates at December 31, 2024 . All estimated changes presented in the table are within the policy limits approved by the board of directors.
Data processing expenses are fees we pay to third parties for use of their software and for processing customer information, deposits and loans. Advertising includes most marketing expenses, including multi-media advertising (public and in-store), promotional events and materials, civic and sales-focused memberships, and community support. Professional fees include legal, accounting, auditing, risk management and payroll processing expenses.
Data processing expenses are fees we pay to third parties for use of their software and for processing customer information, deposits and loans. Advertising includes most marketing expenses, including multi-media advertising (public and in-store), promotional events and materials, civic and sales-focused memberships, and community support.
Accordingly, our board of directors has an Asset/Liability Management Committee (the “ALCO”), which is comprised of three members of executive management and two independent directors, which oversees the asset/liability management process and related procedures.
Accordingly, we maintain an Asset/Liability Management Committee (the “ALCO”), which is comprised of three members of executive management and two independent directors, which oversees the asset/liability management process and related procedures.
Our most liquid assets are cash and cash equivalents. The levels of these assets are dependent on our operating, financing, lending and investing activities during any period. At December 31, 2023, cash and cash equivalents totaled $24.9 million.
Our most liquid assets are cash and cash equivalents. The levels of these assets are dependent on our operating, financing, lending and investing activities during any period. At December 31, 2024 , cash and cash equivalents totaled $52.2 million.
Recent Accounting Pronouncements Please refer to Note 1 in the Notes to the consolidated financial statements that appear starting on page 54 of this Annual Report on Form 10-K for a description of recent accounting pronouncements that may affect our financial condition and results of operations.
Recent Accounting Pronouncements Please refer to Note 1 in the Notes to the consolidated financial statements that appear starting on p age 56 of t his Annual Report on Form 10-K for a description of recent accounting pronouncements that may affect our financial condition and results of operations.
The increase in the average cost of deposits was due to the higher interest rate environment and a change in the composition of the deposit portfolio.
The increase in the average cost of deposits was due to the higher interest rate environment and the composition of the deposit portfolio consisting of a greater proportion of certificates of deposit.
During the year ended December 31, 2023, the net effect on interest expense on Federal Home Loan Bank advances was a reduced expense of $364,000. (2) Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.
During the twelve months ended December 31, 2024 and 2023 , the net effect on interest expense on Federal Home Loan Bank advances was a reduced ex pense of $1.5 million and $364,000, respectively. (2) Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.
As of December 31, 2023, $486.1 million, or 67.7% of our total loan portfolio, consisted of one- to four-family residential real estate loans. We expect that one- to four-family residential real estate lending will remain our primary lending activity. Continue to emphasize commercial and multi-family real estate lending.
As of December 31, 2024 , $472.7 million, or 66.2% of ou r total loan portfolio, consisted of one- to four-family residential real estate loans. We expect that one- to four-family residential real estate lending will remain our primary lending activity. Continue to emphasize commercial and multi-family real estate lending.
The reserve for unfunded commitments (the “Unfunded Reserve”) represents the expected credit losses on off-balance sheet commitments such as unfunded commitments to extend credit and standby letters of credit. However, a liability is not recognized for commitments unconditionally cancellable by the Company.
See Note 15 in the Notes to the consolidated financial statements for further information. The reserve for unfunded commitments (the “Unfunded Reserve”) represents the expected credit losses on off-balance sheet commitments such as unfunded commitments to extend credit and standby letters of credit. However, a liability is not recognized for commitments unconditionally cancellable by the Company.
At December 31, 2023, we had the ability to borrow up to $308.2 million, of which $167.7 million was outstanding and $1.5 million was utilized as collateral for letters of credit issued to secure municipal deposits resulting in remaining availability of $140.4 million.
At December 31, 2024 , we had the ability to borrow up to $280.4 million, of which $175.3 million was outstanding and $1.5 million was utilized as collateral for letters of credit issued to secure municipal deposits resulting in remaining availability of $105.1 million.
The increase reflected a 130 basis point decrease in our net interest rate spread to 1.28% for the twelve months ended December 31, 2023 from 2.58% for the twelve months ended December 31, 2022.
The decrease reflected a 62 basis point decrease in our net interest rate spread to 0.66% for the twelve months ended December 31, 2024 from 1.28% for the twelve months ended December 31, 2023 .
During the twelve months ended December 31, 2023, the use of the cash flow hedges reduced the interest expense on the Federal Home Loan Bank advances by $364,000. Net Interest Income.
During the twelve months ended December 31, 2024 , the use of the cash flow hedges reduced the interest expense on the Federal Home Loan Bank advances by $1.5 million.
This was offset by a $14.2 million decrease in the average balance to $10.9 million for the twelve months ended December 31, 2023 from $25.0 million for the twelve months ended December 31, 2022, reflecting the use of excess liquidity to fund loan originations.
This was offset by a $671,000 decrease in the average balance to $10.2 million for the twelve months ended December 31, 2024 from $10.9 million for the twelve months ended December 31, 2023 , reflecting the use of excess liquidity primarily to fund securities purchases.
As of December 31, 2023the Bank had no loans held for sale. 42 Table of Contents Bank-Owned Life Insurance. Bank-owned life insurance increased $782,000, or 2.6%, to $31.0 million at December 31, 2023 from $30.2 million at December 31, 2022 due to an increase in the cash surrender value. The was no new bank-owned life insurance purchased in 2023. Deposits.
As of December 31, 2024 , the Bank had no loans held for sale. 42 Table of Contents Bank-Owned Life Insurance. Bank-owned life insur ance increased $872,000, or 2.8%, to $31.9 million at December 31, 2024 from $31.0 million at December 31, 2023 due to an increase in the cash surrender value.
Non-accrual loans are included in the computation of average balances. The yields set forth below include the effect of deferred fees, discounts, and premiums that are amortized or accreted to interest income or interest expense, as applicable.
No tax-equivalent yield adjustments have been made, as the effects would be immaterial. All average balances are daily average balances. Non-accrual loans are included in the computation of average balances. The yields set forth below include the effect of deferred fees, discounts, and premiums that are amortized or accreted to interest income or interest expense, as applicable.
The decrease in net loans was due to a $9.6 million, or 1.9%, decrease in one- to four-family residential real estate loans and home equity lines of credit secured by one- to four-family residential real estate to $486.1 million at December 31, 2023 from $495.7 million at December 31, 2022, and a decrease of $12.5 million, or 20.3%, in construction loans to $49.3 million at December 31, 2023 from $61.8 million at December 31, 2022 offset by an increase of $13.0 million, or 8.0%, increase in commercial and multi-family real estate loans to $175.4 million at December 31, 2023 from $162.3 million at December 31, 2022, and an increase of $5.0 million, or 295.3%, in commercial and industrial loans to $6.7 million at December 31, 2023 from $1.7 million as of December 31, 2022.
The decrease in net loans reflected a $13.4 million, or 2.7%, decrease in one- to four-family residential real estate loans and home equity lines of credit to $472.7 million at December 31, 2024 from $486.1 million at December 31, 2023 , and a decrease of $6.1 million, or 12.4%, in construction loans to $43.2 million at December 31, 2024 from $49.3 million at December 31, 2023 offset by an increase of $16.7 million, or 9.5%, increase in commercial and multi-family real estate loans to $192.1 million at December 31, 2024 from $175.4 million at December 31, 2023 .
Interest income increased $6.9 million, or 22.8%, from $30.3 million for the twelve months ended December 31, 2022 to $37.3 million for the twelve months ended December 31, 2023 due to increases in the average balances of and higher yields on interest-earning assets.
Interest income increased $4.4million, or 12.0%, from $37.3 million for the twelve months ended December 31, 2023 to $41.7 million for the twelve months ended December 31, 2024 due to increases in the average balances of and higher yields on interest-earning assets.
The Bank is subject to various regulatory capital requirements administered by NJDBI and the Federal Deposit Insurance Corporation. At December 31, 2023, we exceeded all applicable regulatory capital requirements, and were considered “well capitalized” under regulatory guidelines. See Note 13 in the Notes to the consolidated financial statements. Off-Balance Sheet Arrangements and Aggregate Contractual Obligations Off-Balance Sheet Arrangements.
At December 31, 2024 , we exceeded all applicable regulatory capital requirements, and were considered “well capitalized” under regulatory guidelines. See Note 14 in the Notes to the consolidated financial statements. Off-Balance Sheet Arrangements and Aggregate Contractual Obligations Off-Balance Sheet Arrangements.
This decrease was primarily due to a decrease of $8.1 million in net interest income, and an increase of $1.5 million in non-interest expense, offset by a decrease of $550,000 in the provision for credit losses and a decrease of $2.8 million in income tax expense. Interest Income.
This decrease was primarily due to a decrease of $4.4 million in net interest income, offset by a decrease of $1.2 million in non-interest expense, an increase of $209,000 increase in non-interest income and a $209,000 increase in income tax benefit. Interest Income.
The following table presents the estimated impact of interest rate changes on our estimated net interest income over one year: Changes in Interest Rates (basis points) (1) Change in Net Interest Income Year One (% change from year one base) 400 bp -41.48 300 bp -31.31 200 bp -20.71 100 bp -10.21 0 0 (100) bp 8.74 (200) bp 12.50 (300) bp 13.98 (400) bp 13.09 (1) The calculated change in net interest income assumes an instantaneous parallel shift of the yield curve.
The following table presents the estimated impact of interest rate changes on our estimated net interest income over one year: Changes in Interest Rates (basis points) (1) Change in Net Interest Income Year One (% change from year one base) 400 bp (11.13 ) 300 bp (8.12 ) 200 bp (5.31 ) 100 bp (2.37 ) 0 0 (100) bp 2.34 (200) bp 4.60 (300) bp 6.39 (400) bp 7.18 (1) The calculated change in net interest income assumes an instantaneous parallel shift of the yield curve.
Federal Home Loan Bank of New York borrowings increased $65.4 million, or 63.9%, to $167.7 million at December 31, 2023 from $102.3 million at December 31, 2022, due to proceeds from-long term advances totaling $86.9 million, offset by as a decrease of $21.5 million in short-term advances.
Federal Home Loan Bank of New York borrowings increased $4.5 million, or 2.7%, to $172.2 million at December 31, 2024 from $167.7 million at December 31, 2023 , due to proceeds of $57.8 million from short-term advances, offset by a decrease of $53.4 million in long-term advances.
Interest income on loans increased $5.8 million, or 22.0%, to $32.0 million for the twelve months ended December 31, 2023 compared to $26.3 million for the twelve months ended December 31, 2022 due primarily to a $75.1 million increase in the average balance to $713.8 million for the twelve months ended December 31, 2023 from $638.7 million for the twelve months ended December 31, 2022 and a 38 basis point increase in the average yield from 4.11% for the twelve months ended December 31, 2022 to 4.49% for the twelve months ended December 31, 2023.
Interest income on loans increased $1.4 million, or 4.3%, to $33.4 million for the twelve months ended December 31, 2024 compared to $32.0 million for the twelve months ended December 31, 2023 due primarily to a 20 basis point increase in the average yield from 4.49% for the twelve months ended December 31, 2023 to 4.69% for the twelve months ended December 31, 2024 .
Directors fees consist of the fees we pay to our directors for their service on our board of directors, as well as the costs associated with the directors’ retirement plan and grants to directors under our equity incentive plan.
Professional fees include legal, accounting, auditing, risk management, financial printing, transfer agent and payroll processing expenses. Directors' fees consist of the fees we pay to our directors for their service on our board of directors, as well as the costs associated with the directors’ retirement plan and grants to directors under our equity incentive plan.
The increase was due to a 200 basis point increase in the average cost of interest-bearing deposits to 2.85% for the twelve months ended December 31, 2023 from 0.85% for the twelve months ended December 31, 2022.
The increase was due to a 112 basis point increase in the average cost of interest-bearing deposits to 3.97% for the twelve months ended December 31, 2024 from 2.85% for the twelve months ended December 31, 2023 , offset by a $12.3 million decrease in the average balance of interest-bearing deposits.
Securities classified as available-for-sale, which provide additional sources of liquidity, totaled $68.9 million with a unrealized loss of $9.2 million at December 31, 2023. 46 Table of Contents We are committed to maintaining a strong liquidity position. We monitor our liquidity position on a daily basis. We anticipate that we will have sufficient funds to meet our current funding commitments.
Securities classified as available-for-sale, which provide additional sources of liquidity, totaled $140.3 million with a unrealized loss of $5.6 million at December 31, 2024 . 46 Table of Contents We are committed to maintaining a strong liquidity position. We monitor our liquidity position on a daily basis.
Interest expense on interest-bearing deposits increased $12.9 million, or 252.9%, to $18.0 million for the twelve months ended December 31, 2023 from $5.1 million for the twelve months ended December 31, 2022.
Interest expense on interest-bearing deposits increased $6.6 million, or 36.4%, to $24.6 million for the twelve months ended December 31, 2024 from $18.0 million for the twelve months ended December 31, 2023 .
The average balances of certificates of deposit increased $103.5 million to $498.1 million for the twelve months ended December 31, 2023 from $394.6 million for the twelve months ended December 31, 2022 while NOW and money market accounts and savings accounts decreased $54.8 million and $14.3 million for the twelve months ended December 31, 2023, respectively, compared to the twelve months ended December 31, 2022.
The average balance of certificates of deposit increased $10.2 million to $508.3 million for the twelve months ended December 31, 2024 from $498.1 million for the twelve months ended December 31, 2023 while NOW and money market accounts and savings accounts decreased $18.1 million and $4.4 million for the twelve months ended December 31, 2024 , respectively, compared to the twelve months ended December 31, 2023 .
The increase was due to an increase in the average cost of 156 basis points to 3.67% for the twelve months ended December 31, 2023 from 2.11% for the twelve months ended December 31, 2022 due to the new borrowings at higher rates.
The increase was also due, to a lesser extent, an increase in the average cost of borrowings of nine basis points to 3.76% for the twelve months ended December 31, 2024 from 3.67% for the twelve months ended December 31, 2023 due to the new borrowings being at higher rates. Net Interest Income.
At December 31, 2023, municipal deposits totaled $48.0 million, which represented 7.7% of total deposits, and brokered deposits totaled $53.5 million, which represented 8.5% of total deposits. At December 31, 2022, municipal deposits totaled $57.5 million, which represented 8.2% of total deposits, and brokered deposits totaled $53.3 million, which represented 8.5% of total deposits. Borrowings.
At December 31, 2024 , municipal deposits totaled $30.7 million, which represented 4.8% of total deposits, and brokered deposits totaled $101.6 million, which represented 15.8% of total deposits. At December 31, 2023 , municipal deposits totaled $48.0 million, which represented 7.7% of total deposits, and brokered deposits tot aled $53.5 million, which represented 8.5% of total deposits. Borrowings.
At December 31, 2023 $53.3 million of deposits were brokered deposits costing 4.65%. Interest expense on Federal Home Loan Bank borrowings increased $2.1 million, or 98.1%, from $2.2 million for the twelve months ended December 31, 2022 to $4.3 million for the twelve months ended December 31, 2023.
Interest expense on Federal Home Loan Bank borrowings increased $2.3 million, or 54.4%, from $4.3 million for the twelve months ended December 31, 2023 to $6.6 million for the twelve months ended December 31, 2024 .
Interest income on cash and cash equivalents increased $451,000, or 385.5%, to $568,000 for the twelve months ended December 31, 2023 from $117,000 for the twelve months ended December 31, 2022 due a 476 basis point increase in the average yield from 0.47% for the twelve months ended December 31, 2022 to 5.23% for the twelve months ended December 31, 2023 due to the higher interest rate environment.
Interest i ncome on cash and cash equivalents increased $38,000, or 6.7%, to $606,000 for the twelve months ended December 31, 2024 from $568,000 for the twelve months ended December 31, 2023 due a 71 basis point increase in the average yield from 5.23% for the twelve months ended December 31, 2023 to 5.94% for the twelve months ended December 31, 2024 due to the higher interest rate environment for most of 2024.
We attract and retain transaction accounts by offering competitive products and rates and providing quality customer service. Core deposits are our least costly source of funds, which improves our interest rate spread and also contributes non-interest income from account related services.
Core deposits are our least costly source of funds, which improves our interest rate spread and also contributes non-interest income from account related services.
Net interest income decreased $8.1 million, or 35.1%, to $15.0 million for the twelve months ended December 31, 2023 from $23.1 million for the twelve months ended December 31, 2022.
Net interest income decreased $4.4 million, or 29.5%, to $10.6 million for the twelve months ended December 31, 2024 from $15.0 million for the twelve months ended December 31, 2023 .
Net loans decreased $4.3 million, or 0.6%, to $714.7 million at December 31, 2023 from $719.0 million at December 31, 2022 due to $69.0 million in repayments, partially offset by new production of $64.7 million.
Net loans decreased $3.0 million, or 0.4%, to $711.7 million at December 31, 2024 from $714.7 million at December 31, 2023 due to $90.1 million in repayments, partially offset by new originations of approximately $60.5 million and loan purchases of approximately $26.6 million.
Critical Accounting Policies The discussion and analysis of the financial condition and results of operations are based on our financial statements, which are prepared in conformity with U.S. generally accepted accounting principles.
At December 31, 2023 , there were $12.8 million of non-performing assets, which represented 1.36% of total assets. Critical Accounting Estimates The discussion and analysis of the financial condition and results of operations are based on our financial statements, which are prepared in conformity with U.S. generally accepted accounting principles.
Our commercial real estate and multi-family loan portfolio increased to $175.4 million, or 24.5% of total loans, at December 31, 2023, from $162.3 million, or 22.5% of total loans, at December 31, 2022. Increase lower-cost core deposits . We continue to emphasize offering core deposits (demand deposit accounts, savings accounts and money market accounts) to individuals, businesses and municipalities.
Our commercial real estate and multi-family loan portfolio increased to $192.2 million, or 26.9% of total loans, at December 31, 2024 , from $175.4 million, or 24.5% of total loans, at December 31, 2023 . Increase lower-cost core deposits .
Depending on market conditions, we may be required to pay higher rates on such deposits or borrowings than we currently pay. We believe, however, based on past experience that a significant portion of such deposits will remain with us. We have the ability to attract and retain deposits by adjusting the interest rates offered. Capital Resources.
We believe, however, based on past experience that a significant portion of such deposits will remain with us. We have the ability to attract and retain deposits by adjusting the interest rates offered. Capital Resources. The Bank is subject to various regulatory capital requirements administered by NJDBI and the Federal Deposit Insurance Corporation.
We plan to open a new branch in Upper Saddle River during the second quarter of 2024. We will consider acquisition opportunities that may enhance the value of our franchise and yield potential financial benefits for our stockholders. Although we believe opportunities exist to increase our market share in our market, we expect to expand into contiguous markets.
We opened a new branch in Upper Saddle River during the second quarter of 2024, in which deposits have continued to grow throughout the year. We will co nsider acquisition opportunities that may enhance the value of our franchise and yield potential financial benefits for our stockholders.
We recorded a $125,000 recovery of credit losses for the twelve months ended December 31, 2023 compared to a $425,000 provision for loan losses for the twelve-month period ended December 31, 2022. The Bank had a decrease in the loan portfolio as well as no charge-offs offset by increased delinquent and non-performing loans.
We recorded a $148,000 recovery of credit losses for the year ended December 31, 2023 compared to a $125,000 recovery of credit losses for the twelve-month period ended December 31, 2023 . The Bank had decreases in the loan and securities portfolios and no charge-offs during the years.
Comparison of Operating Results for the Years Ended December 31, 2023 and 2022 General. Net income decreased by $6.2 million, or 90.7%, to $643,000 for the twelve months ended December 31, 2023 from $6.9 million for the twelve months ended December 31, 2022.
Net income decreased by $2.8 million, or 437.8%, to a net loss of $2.2 million for the twelve months ended December 31, 2024 from net income of $643,000 for the twelve months ended December 31, 2023 .
Total cash and cash equivalents increased $8.1 million, or 48.0%, to $24.9 million at December 31, 2023 from $16.8 million at December 31, 2022. This increase was primarily due to loan payments received, proceeds from calls and maturities of securities and additional borrowings, offset by the decrease in deposits. Securities Available for Sale.
This increase was primarily due to loan payments received, proceeds from sales and maturities of securities, additional borrowings and an increase in deposits. Investment Securities. Total securities available for sale increased $71.4 million, or 103.7%, to $140.3 million at December 31, 2024 from $68.9 million at December 31, 2023 .
Interest expense increased $15.0 million, or 206.9%, from $7.3 million for the twelve months ended December 31, 2022 to $22.3 million for the twelve months ended December 31, 2023 primarily due higher costs on interest-bearing liabilities.
Interest expense increa sed $8.9 million, or 39.9%, from $22.3 million for the twelve months ended December 31, 2023 to $31.2 million for the twelve months ended December 31, 2024 due to increases in the average balance of and higher costs on interest-bearing liabilities.
Interest income on securities increased $484,000, or 13.2%, to $4.2 million for the twelve months ended December 31, 2023 from $3.7 million for the twelve months ended December 31, 2022 due primarily to a 68 basis point increase in the average yield from 2.19% for the twelve months ended December 31, 2022 to 2.87% for the twelve months ended December 31, 2023.
Interest income on securities increased $2.7 million, or 66.7%, to $6.9 million for the twelve months ended December 31, 2024 from $4.2 million for the twelve months ended December 31, 2023 due to a 101 basis point increase in the average yield from 2.87% for the twelve months ended December 31, 2023 to 3.88% for the twelve months ended December 31, 2024 , and by a $33.8 million increase in the average balance of securities to $178.7 million for the twelve months ended December 31, 2024 from $144.9 million for the twelve months ended December 31, 2023 . 43 Table of Contents Interest Expense.
However, at December 31, 2023, core deposits decreased to 21.1% of our total deposits compared to 29.8% of our total deposits at December 31, 2022 due to customers moving funds to higher-yielding certificates of deposits in the higher interest rate environment. Grow through opportunistic bank or branch acquisitions.
At December 31, 2024 , core d eposits increased to 24.8% o f our total deposits compared to 21.1% of our total deposits at December 31, 2023 due to customers moving funds out of certificates of deposits as interest rates have begun to decrease. Grow through opportunistic bank or branch acquisitions or formations.
The decrease in deposits reflected decreases in NOW, money market and savings accounts, which decreased by $68.7 million from $170.2 million at December 31, 2022 to $101.5 million at December 31, 2023, offset by an increase in certificate of deposit accounts, which increased by $682,000 to $493.3 million from $492.6 million at December 31, 2022.
The increase in deposits reflected increases in NOW, money market and savings accounts, which increased by $14.7 million from $101.5 million at December 31, 2023 to $116.2 million at December 31, 2024 , and an increase in noninterest bearing deposits, which increased by $2.1 million from $30.6 million at December 31, 2023 to $32.7 million at December 31, 2024 .
Income taxes decreased $2.8 million, or 106.2%, to a benefit of $162,000 for the twelve months ended December 31, 2023 from $2.6 million expense for the twelve months ended December 31, 2022. The decrease was due to $9.0 million, or 94.9%, of lower taxable income.
Income tax benefit increased $209,000, or 129.1%, to a benefit of $372,000 for the twelve months ended December 31, 2024 from a $162,000 benefit for the twelve months ended December 31, 2023 . The increase in benefit was due to $3.0 million of lower taxable income.
The weighted average rate of borrowings was 4.54% and 3.36% as of December 31, 2023 and December 2022, respectively. Cash flow hedges are used to manage interest rate risk. At December 31, 2023, the Company had two interest rate swaps with a notional amount of $20.0 million hedging on certain FHLB advances. Total Equity.
The weighted average rate paid on borrowings was 4.49% and 4.54% as of December 31, 2024 and December 31, 2023 , respectively. The Company uses cash flow hedges are used to manage interest rate risk.
The increase was offset by a $23.1 million decrease in the average balance of securities to $144.9 million for the twelve months ended December 31, 2023 from $168.0 million for the twelve months ended December 31, 2022. 43 Table of Contents Interest Expense.
The increase was offset by a $661,000 decrease in the average balance to $713.1 million for the twelve months ended December 31, 2024 from $713.8 million for the twelve months ended December 31, 2024 .
We are disciplined in managing non-interest expenses by identifying cost savings opportunities such as renegotiating key third-party contracts and reducing other operating expenses. Our efficiency ratio was 97.04% for the year ended December 31, 2023 compared to 59.03% for the year ended December 31, 2022.
We are focused on controlling expenses while increasing our net income. We are disciplined in managing non-interest expenses by identifying cost savings opportunities such as renegotiating key third-party contracts and reducing other operating expenses.
The capital we raised in the offering will also provide us the opportunity to acquire smaller institutions or fee-based businesses located in or contiguous to our market area. Continue to emphasize operating efficiencies and cost controls . We are focused on controlling expenses while increasing our net income.
Although we believe opportunities exist to increase our market share in our market, we expect to expand into contiguous markets. Our capital position affords us the opportunity to acquire smaller institutions or fee-based businesses located in or contiguous to our market area. Continue to emphasize operating efficiencies and cost controls .
Certificates of deposit due within one year of December 31, 2023 totaled $430.8 million, or 68.9% of total deposits. If these deposits do not remain with us, we will be required to seek other sources of funds, including other deposits and Federal Home Loan Bank of New York advances.
If these deposits do not remain with us, we will be required to seek other sources of funds, including other deposits and Federal Home Loan Bank of New York advances. Depending on market conditions, we may be required to pay higher rates on such deposits or borrowings than we currently pay.
See Note 1 to the Notes to the consolidated financial statements for a complete discussion of the allowance for loan losses. Selected Financial Data The following tables set forth selected historical financial and other data for Bogota Financial Corp. and Bogota Savings Bank at and for the periods indicated.
See "Overview - Provision for Credit Losses" or Note 1 to the Notes to the consolidated financial statements for a complete discussion of the allowance for loan losses. 40 Table of Contents Average Balance Sheets The following tables set forth average balances, average yields and costs, and certain other information for the years indicated.
The increase was also due to an increase in the average balance of borrowings of $14.4 million to $116.8 million for the twelve months ended December 31, 2023 from $102.5 million for the twelve months ended December 31, 2022. Cash flow hedges used to manage interest rate risk totaled $20.0 million at December 31, 2023.
The increase was primarily due to a $59.2 million increase in the average balance of borrowings to $176.0 million for the twelve months ended December 31, 2024 from $116.8 million for the twelve months ended December 31, 2023 .
The effective tax rate for the twelve months ended December 31, 2023 and 2022 was (33.76%) and 27.55%, respectively. 44 Table of Contents Management of Market Risk General. The majority of our assets and liabilities are monetary. Consequently, our most significant form of market risk is interest rate risk.
The benefit would have been higher, but we recorded valuation reserves on certain deferre d tax assets as of December 31, 2024 . 44 Table of Contents Management of Market Risk General. The majority of our assets and liabilities are monetary. Consequently, our most significant form of market risk is interest rate risk.
Loss rates are estimated by utilizing the same loss rates calculated for the allowance general reserve. Contractual Obligations. In the ordinary course of our operations, we enter into certain contractual obligations. Such obligations include data processing services, operating leases for premises and equipment, agreements with respect to borrowed funds and deposit liabilities.
Such obligations include data processing services, operating leases for premises and equipment, agreements with respect to borrowed funds and deposit liabilities.
Interest rates do not necessarily move in the same direction or to the same extent as the prices of goods and services.
Interest rates do not necessarily move in the same direction or to the same extent as the prices of goods and services. ITEM 7A. Quantitative and Qualitative Disclosures About Market Risk For information regarding market risk, see Item 7. “Management’s Discussion and Analysis of Financial Conditions and Results of Operations—Management of Market Risk.”
For the twelve months ended December 31, 2023, non-interest expense increased $1.5 million, or 10.3%, over 2022. Salaries and employee benefits increased $1.1 million, or 12.7%, due to an accrual of a severance contract for the retirement of the previous President and a higher employee count. Director fees decreased $181,000, or 22.6%, due to lower pension expense.
Salaries and employee benefits decreased $1.1 million, or 10.9%, as 2023 amounts reflected an accrual of $966,000 for a severance contract for the retirement of the previous President and a higher employee count when compared to 2024. Professional fees increased $129,000, or 19.5%, due to higher legal expense primarily related to the sale-leaseback transaction.
We emphasize a disciplined credit culture based on intimate knowledge of the market, close ties to our customers, sound underwriting standards and experienced loan officers. We are committed to actively monitoring and managing our loan portfolio in an effort to proactively identify and mitigate credit risks within the portfolio.
To support our growth in a cost-effective way, we plan to continue to invest prudently in technology to help improve our operational infrastructure. 39 Table of Contents Maintain disciplined underwriting . We emphasize a disciplined credit culture based on intimate knowledge of the market, close ties to our customers, sound underwriting standards and experienced loan officers.
Stockholders’ equity decreased $2.5 million, or 1.8% to $137.2 million, due to increased accumulated other comprehensive loss for securities available for sale of $254,000 and the repurchase of 418,786 shares of stock at a cost of $3.7 million, offset by net income of $643,000 for the twelve months ended December 31, 2023 and stock compensation of $933,000.At December 31, 2023, the Company’s ratio of average stockholders’ equity-to-total assets was 15.24%, compared to 15.61% at December 31, 2022.
Stockholders’ equity increased $116,000, or 0.1%, to $137.3 million, due to a reduction in the accumulated other comprehensive loss on the securities portfolio of $2.9 million, offset by a net loss of $2.2 million and the repurchase of 221,130 shares of stock at a cost of $1.7 million.
Year Ended December 31, 2023 vs 2022 Increase (Decrease) Due to Volume Rate Net (In thousands) Interest income: Cash and cash equivalents $ (102 ) $ 553 $ 451 Loans receivable 3,248 2,534 5,782 Securities (554 ) 1,038 484 Other interest-earning assets 39 178 217 Total interest-earning assets 2,631 4,303 6,934 Interest expense: NOW and money market accounts (406 ) 1,018 612 Savings accounts (51 ) 447 396 Certificate of deposit 1,339 10,571 11,910 Federal Home Loan Bank advances 338 1,783 2,121 Total interest-bearing liabilities 1,220 13,819 15,039 Net increase (decrease) in net interest income $ 1,411 $ (9,516 ) $ (8,105 ) Comparison of Financial Condition at December 31, 2023 and December 31, 2022 Total Assets.
Year Ended December 31, 2024 vs 2023 Increase (Decrease) Due to Volume Rate Net (In thousands) Interest income: Cash and cash equivalents $ (37 ) $ 75 $ 38 Loans receivable (30 ) 1,396 1,366 Securities 1,107 1,670 2,777 Other interest-earning assets 232 57 289 Total interest-earning assets 1,272 3,198 4,470 Interest expense: NOW and money market accounts (328 ) 288 (40 ) Savings accounts (57 ) 298 241 Certificate of deposit 335 6,025 6,360 Federal Home Loan Bank advances 2,221 110 2,331 Total interest-bearing liabilities 2,171 6,721 8,892 Net decrease in net interest income $ (899 ) $ (3,523 ) $ (4,422 ) Comparison of Financial Condition at December 31, 2024 and December 31, 2023 Total Assets.
Total deposits decreased $76.1 million, or 10.8%, to $625.3 million at December 31, 2023 from $701.4 million at December 31, 2022.
Total assets increased $32.2 million, or 3.4%, to $971.5 million at December 31, 2024 from $939.3 million at December 31, 2023 .

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