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What changed in Bogota Financial Corp.'s 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of Bogota Financial Corp.'s 2024 and 2025 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 2025 report.

+173 added−194 removedSource: 10-K (2026-03-27) vs 10-K (2025-03-28)

Top changes in Bogota Financial Corp.'s 2025 10-K

173 paragraphs added · 194 removed · 149 edited across 6 sections

Item 1. Business

Business — how the company describes what it does

57 edited+5 added−13 removed225 unchanged
Biggest changeBogota 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.
Biggest changeBogota 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. In addition, the Federal Reserve Board has enforcement authority over Bogota Financial, MHC and Bogota Financial Corp. and their non-bank subsidiaries.
Additionally, under the prompt corrective action laws, the ability of a bank holding company to pay dividends may be restricted if a subsidiary bank becomes undercapitalized. In addition, the Federal Reserve has issued guidance that requires consultation with supervisory staff prior to a bank holding company’s payment of dividends or repurchases of stock under certain circumstances.
Additionally, under the prompt corrective action laws, the ability of a bank holding company to pay dividends may be restricted if a subsidiary bank becomes undercapitalized. In addition, the Federal Reserve Board has issued guidance that requires consultation with supervisory staff prior to a bank holding company’s payment of dividends or repurchases of stock under certain circumstances.
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.
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, 2025 , 40% of our current staff had been with us for five years or more.
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.
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, 2025 are summarized in the following table.
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.
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, 2025 , Bogota Savings Bank had net operating loss carryovers assumed from the Gibraltar merger and incurred in 2025 totaling $3.2 million. Capital Loss Carryovers.
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.
At December 31, 2025 , 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.
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, 2025 , 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, 2025 , 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.
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 .
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, 2025 .
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.
At December 31, 2025 , 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 , 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.
At December 31, 2025 , 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, 2025 , this loan was performing according to its original terms.
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 .
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, 2025 .
Common equity tier 1 capital, tier 1 capital, total capital, risk weighted assets, and average assets are defined in the Basel III rules and applicable federal regulation. The Bogota Savings Bank opted to exclude accumulated other comprehensive income components from common equity tier 1 and total regulatory capital.
Common equity tier 1 capital, tier 1 capital, total capital, risk weighted assets, and average assets are defined in the Basel III rules and applicable federal regulations. The Bogota Savings Bank opted to exclude accumulated other comprehensive income components from common equity tier 1 and total regulatory capital.
Deposits have traditionally been our primary source of funds for our lending and investment activities. We also use borrowings, primarily Federal Home Loan Bank of New York advances, to supplement cash flows, as needed. In addition, funds are derived from scheduled loan payments, investment maturities, loan sales, loan prepayments, retained earnings and income on earning assets.
Deposits are our primary source of funds for our lending and investment activities. We also use borrowings, primarily Federal Home Loan Bank of New York advances, to supplement cash flows, as needed. In addition, funds are derived from scheduled loan payments, investment maturities, loan sales, loan prepayments, retained earnings and income on earning assets.
Transactions with Affiliates and Federal Reserve Regulation W. Transactions between banks and their affiliates are governed by federal law.
Transactions with Affiliates and Federal Reserve Board Regulation W. Transactions between banks and their affiliates are governed by federal law.
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 .
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, 2024 .
At December 31, 2024 , we had one non-performing construction loan, which is being actively managed by the Company totaling $10.9 million and is considered well-secured with a loan-to-value of 41% based on an appraisal performed in November 2024. We did not record any specific reserve, or charge-offs for this loan.
At December 31, 2025 , we had one non-performing construction loan, which is being actively managed by the Company totaling $10.9 million and is considered well-secured with a loan-to-value of 41% based on an appraisal performed in March 2025. We did not record any specific reserve, or charge-offs for this loan.
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.
We underwrite our participation interest in the loans that we purchase according to our own underwriting criteria and procedures. At December 31, 2025 , the outstanding balances of our loan participations where we are not th e lead lender totaled $3.2 million, all of which were commercial or multi-family real estate loans.
In addition, the Bank Holding Company Act of 1956, as amended, provides that no company may acquire control of a bank or bank holding company within the meaning of that statute without having first obtained the approval of the Federal Reserve Board.
In addition, the Bank Holding Company Act of 1956, as amended, provides that no company may acquire control of a bank or bank holding company within the meaning of that statute or its implementing regulations without having first obtained the approval of the Federal Reserve Board.
We purchase for our portfolio both fixed- and adjustable rate one- to four-family real estate loans, with maturities up to 30 years. During the year ended December 31, 2024 , we purchased three loans totaling $2.7 million from correspondent banks.
We purchase for our portfolio both fixed- and adjustable rate one- to four-family real estate loans, with maturities up to 30 years. During the year ended December 31, 2025 , we purchased three loans totaling $2.7 million from correspondent banks and none in 2025.
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.
At December 31, 2025 , based on the 15% limitation, Bogota Savings Bank’s loans-to-one-borrower limit was approx imately $19.9 million. At December 31, 2025 , our largest loan relationship with a single borrower was for $16.1 m illion, which consisted of four loans secured by various commercial real estate and multi-family properties in our primary market area.
Loans to Insiders and Federal Reserve Regulation O.
Loans to Insiders and Federal Reserve Board Regulation O.
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.
An institution is considered “well capitalized” if it currently has 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.
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.
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, 2025 , consumer loans totaled $118,000, representing less than 1.0% of our total loan portfolio.
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.
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, 2025 wa s 15.80%; see No te 14 for more information. 17 Table of Contents Standards for Safety and Soundness.
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.
Based on FDIC data at June 30, 2025, we had 0.05% 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.
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 also originate loans to finance the construction of one- to four-family residential properties and for the acquisition of land. At December 31, 2025 , residential construction loans totaled $1.6 million, or less than 1.0% of our total loan portfolio. These loans are secured by properties located in our primary market area.
All such loans were performing according to their original terms at December 31, 2024 .
All such loans were performing according to their original terms at December 31, 2025 .
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.
As of December 2025 , the unemployment rate was 3.5% for Bergen County, 5.7% for Essex County, 4.5% for Monmouth County, 5.2% for Ocean County and 4.2% for Morris County, compared to 5.4% for New Jersey and a national rate of 4.3% according to US Bureau of Labor Statistics. Competition We face significant competition for deposits and l oans.
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.
Based on FDIC data at June 30, 2025, we had 0.05% of the FDIC-insured deposit market share in Morris County, which was the 29 th largest market share among the 29 institutions with offices in the county.
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.
Commercial and Multi-Family Real Estate Loans . At December 31, 2025 , we had $180.9 million in commercial and multi-family real estate loans, representing 27.8% 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.
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, 2025, (the latest date for which information is available), we had 0.82% of the FDIC-insured deposit market share in Bergen County, which was the 21st largest market share among the 43 institutions with offices in the county.
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.
We also provide construction loans primarily to local developers for the construction of one- to four-family residential developments. At December 31, 2025 , we had commercial construction loans that totaled $20.4 million, or 3.14% of our total loan portfolio. These loans were secured by land and existing buildings located in our primary market area.
Qualifying community banking organizations that elect to use the CBLR framework and that meet the specified capital requirement, which starting in 2022 is maintaining a leverage ratio of greater than 9%, are considered to have satisfied the generally applicable risk-based and leverage capital requirements in the agencies’ capital rules and will be considered to have met the well capitalized ratio requirements under the prompt corrective action laws and regulations.
Qualifying community banking organizations that elect to use the CBLR framework and that meet the specified capital requirement, which starting in 2022 is maintaining a leverage ratio of greater than 9% but has been proposed to be lowered to 8% if a final rule is issued, are considered to have satisfied the generally applicable risk-based and leverage capital requirements in the agencies’ capital rules and will be considered to have met the requisite thresholds to be considered well capitalized under the prompt corrective action laws and regulations.
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.
As of December 31, 2024 , 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 $11.0 million, $2.1 million and $31.6 m illion respectively.
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.
At December 31, 2025 , municipal deposits totaled $45 .1 million, which represented 6 .9 % 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 , commercial and industrial loans totaled $6.2 million, or 0.9% of tot al loans. Commercial lending products include revolving lines of credit and term loans.
At December 31, 2025 , commercial and industrial loans totaled $3.2 million, or 0.5% of tot al loans. Commercial lending products include revolving lines of credit and term loans.
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.
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 $124,000, $77,000, $123,000, $86,000 and $135,000, respectively, as of December 31, 2025 , according to U.S. Bureau of Labor Statistics.
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.
At December 31, 2025 , multi-family real estate loans totaled $58.9 million representing 9.1% 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.
The median household income for New Jersey is approximately $101,000 and the median household income is approximately $81,000 for the United States.
The median household income for New Jersey is approximately $104,000 and the median household income is approximately $85,000 for the United States.
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.
At December 31, 2025 , commercial real estate loans totaled $122.0 million, of which $30.0 million was owner-occupied real estate and $92.0 million was sec ured by income producing, or non-owner-occupied real estate.
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.
This compares to $101.6 million of brokered deposits (64 accounts), which represented 15.8% of total deposits and 74.0% of total capital at December 31, 2024 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, 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 .
At December 31, 2025 , we had consolidated total assets of $904.9 million, total deposits of $652.4 million and total equity of $140.9 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 .
The CRA currently requires the Federal Deposit Insurance Corporation to provide a written evaluation of an institution’s CRA performance utilizing a four-tiered descriptive rating system.
The CRA and the implementing regulations currently utilized by the Federal Deposit Insurance Corporation require the agency to provide a written evaluation of an institution’s CRA performance utilizing a four-tiered descriptive rating system.
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.
At or for the Years Ended December 31, 2025 2024 (Dollars in thousands) Gross loans $ 650,176 $ 714,337 Net loans 647,646 711,716 Average loans 686,850 713,138 Non-accrual loans 13,311 13,963 Allowance at beginning of year 2,621 2,786 Recovery for credit losses (130 ) (148 ) Provision (recovery) for off-balance sheet commitments 39 (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 $ 2,530 $ 2,621 Allowance for credit losses to non-accrual loans at end of period 19.01 % 21.81 % Allowance for credit losses to total loans outstanding at end of period 0.39 % 0.39 % Non-accrual loans to total loans 2.04 % 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.
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.
Bergen County is the most populous county in New Jersey (out of 21 counties) with a population of approximately 1,002,000 compared to an estimated population of 916,000 for Essex County, 653,000 for Monmouth County, 678,000 for Ocean County, 534,000 for Morris County and 9.7 million for the entire state as of December 31, 2025 according to U.S.
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.
For the years ended December 31, 2025 we did not purchase any loans and for the year ended December 31, 2024 and we purchased $23.9 million from these mortgage brokers. As part of purchasing the loans, we typically, but not always, acquire the servicing rights to the loans.
At December 31, 2024 , we had $101.6 million of brokered deposits (64 accounts), which represented 15.8% of total deposits and 74.0% of total capital at December 31, 2024 with such funds having a weighted average remaining term to maturity of seven months.
At December 31, 2025 , we had $109.7 million of brokered deposits (79 accounts), which represented 16.8% of total deposits and 77.9% of total capital at December 31, 2025 with such funds having a weighted average remaining term to maturity of seven months.
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.
At December 31, 2025 , one- to four-family residential real estate loans totaled $443.9 million, or 68.3% of our total loan portfolio, and consisted of $294.0 million of fixed-rate loans and $149.9 million of adjustable-rate loans. Most of these one- to four-family residential properties are located in our primary market area.
In addition, the Federal Reserve Board has enforcement authority over Bogota Financial, MHC and Bogota Financial Corp. and their non-bank subsidiaries. Among other things, this authority permits the Federal Reserve Board to restrict or prohibit activities that are determined to be a serious risk to the subsidiary savings bank.
Among other things, this authority permits the Federal Reserve Board to restrict or prohibit activities that are determined to be a serious risk to the subsidiary savings bank.
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, 2025 2024 Amount Percent Average Rate Amount Percent Average Rate Noninterest bearing demand accounts $ 28,177,516 4.32 % — % $ 32,681,963 5.09 % — % NOW accounts 65,532,122 10.04 2.76 55,378,051 8.62 2.53 Money market accounts 10,244,512 1.57 0.44 13,996,460 2.18 0.58 Savings accounts 54,558,439 8.36 2.13 46,851,793 7.30 1.90 Certificates of deposit 493,934,468 75.70 3.75 493,279,775 76.81 4.37 Total $ 652,447,057 100.00 % 3.30 % $ 642,188,042 100.00 % 3.73 % As of December 31, 2025 , 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 $58.2 million, $17.5 million and $196.9, millio n respectively.
At 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.
At December 31, 2025 2024 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 $ 1,618 63.95 % 68.28 % $ 1,681 64.14 % 66.19 % Commercial real estate loans 586 23.16 18.76 508 19.38 16.52 Multi-family real estate loans 241 9.53 9.07 289 11.03 10.38 Construction loans 69 2.73 3.39 123 4.69 6.05 Commercial and industrial loans 16 0.63 0.49 20 0.76 0.01 Consumer loans — — — — — — Total $ 2,530 100.00 % 100.00 % $ 2,621 100.00 % 100.00 % Investment Activities General.
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.
At December 31, 2025 (In thousands) Maturity Period: Three months or less $ 112,533 Over three through six months 27,453 Over six through twelve months 40,499 Over twelve months 16,450 Total $ 196,935 14 Table of Contents Employees and Human Capital Resources As of December 31, 2025 , we had 56 full-time employees and one part-time employees.
In 2020, the federal banking agencies adopted a final rule that established 9% as the CBLR, for 2022 and thereafter. Qualifying community banking organizations may opt into and out of the CBLR framework on their quarterly call reports.
Qualifying community banking organizations may opt into and out of the CBLR framework on their quarterly call reports.
The Federal Home Loan Banks provide a central credit facility primarily for member institutions. Bogota Savings Bank, as a member of the Federal Home Loan Bank of New York, is required to acquire and hold shares of capital stock in the Federal Home Loan Bank of New York.
Bogota Savings Bank, as a member of the Federal Home Loan Bank of New York, is required to acquire and hold shares of capital stock in the Federal Home Loan Bank of New York. Bogota Savings Bank was in compliance with this requirement at December 31, 2025 . Holding Company Regulation Federal Holding Company Regulation .
One Year or Less More than One Year through Five Years More than Five Years through Ten Years More than Ten Years Total Weighted Average Yield Weighted Average Yield Weighted Average Yield Weighted Average Yield Fair Value Weighted Average Yield Securities available for sale: U.S. government and agency obligations 2.23 % 2.00 % — % — % $ 12,793 2.18 % Corporate bonds 6.00 5.93 6.41 7.21 38,230 6.38 Municipal securities — — — 2.28 398 2.28 Mortgage-backed securities – residential — 2.81 6.32 4.75 74,553 4.80 Mortgage-backed securities – commercial 2.29 5.07 2.65 2.36 14,334 2.63 Total 2.34 % 4.95 % 5.78 % 4.66 % $ 140,308 4.74 % Sources of Funds General.
One Year or Less More than One Year through Five Years More than Five Years through Ten Years More than Ten Years Total Weighted Average Yield Weighted Average Yield Weighted Average Yield Weighted Average Yield Fair Value Weighted Average Yield Securities available for sale: U.S. government and agency obligations — % 2.00 % — % — % $ 2,944 2.00 % Corporate bonds — 6.74 5.24 6.63 53,216 5.70 Municipal securities — — — 2.28 427 2.28 Mortgage-backed securities – residential — 3.11 5.1 5.07 89,984 5.07 Mortgage-backed securities – commercial — 4.36 2.59 2.40 11,494 2.21 Total — % 5.44 % 4.79 % 4.91 % $ 158,065 4.65 % Sources of Funds General.
We expect to lose our status as an emerging growth company effective December 31, 2025, which is the end of the fifth year after the date of the first sale of Bogota Financial Corp.'s common stock. 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.
As such Bogota Financial Corp. is subject to the information, proxy solicitation, insider trading restrictions and other requirements under the Securities Exchange Act of 1934. 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.
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.
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. In December 2025, the New Jersey Division on Civil Rights adopted regulations that implement the state's civil rights law and that will prohibit certain discriminatory practices by lenders in the state.
Removed
At December 31, 2024 Residential Real Estate Commercial Real Estate Multi- Family Real Estate Construction Commercial and Industrial Consumer Total Loans (In thousands) Amounts due in: One year or less $ 7,803 $ 30 $ 280 $ 11,856 $ 3,026 $ 81 $ 23,076 More than one year through five years 15,083 26,479 6,000 25,878 3,020 - 76,460 More than five years through fifteen years 64,806 62,720 42,238 5,201 118 - 175,083 More than fifteen years 385,055 28,780 25,634 249 — - 439,718 Total $ 472,747 $ 118,009 $ 74,152 $ 43,184 $ 6,164 $ 81 $ 714,337 The following table sets forth our fixed and adjustable-rate loans at December 31, 2024 that are contractually due after December 31, 2025 .
Added
At December 31, 2025 Residential Real Estate Commercial Real Estate Multi- Family Real Estate Construction Commercial and Industrial Consumer Total Loans (In thousands) Amounts due in: One year or less $ 748 $ 188 $ 231 $ 744 $ 958 $ 118 $ 2,987 More than one year through five years 12,413 52,378 9,071 13,676 2,192 - 89,730 More than five years through fifteen years 53,894 37,132 26,813 5,985 61 - 123,885 More than fifteen years 376,839 32,263 22,830 1,641 — - 433,573 Total $ 443,894 $ 121,961 $ 58,945 $ 22,046 $ 3,211 $ 118 $ 650,175 The following table sets forth our fixed and adjustable-rate loans at December 31, 2025 that are contractually due after December 31, 2026 .
Removed
Fixed Rates Floating or Adjustable Rates Total (In thousands) Residential real estate loans $ 310,774 $ 154,170 $ 464,944 Commercial real estate loans 33,205 84,774 117,979 Multi-family real estate loans 4,999 68,873 73,872 Construction loans - 31,328 31,328 Commercial and industrial loans 2,884 254 3,138 Consumer loans - - - Total $ 351,862 $ 339,399 $ 691,261 5 Table of Contents Residenti al Real Estate Loans.
Added
Fixed Rates Floating or Adjustable Rates Total (In thousands) Residential real estate loans $ 293,233 $ 149,913 $ 443,146 Commercial real estate loans 30,120 91,653 121,773 Multi-family real estate loans 4,625 54,089 58,714 Construction loans - 21,302 21,302 Commercial and industrial loans 2,060 193 2,253 Consumer loans - - - Total $ 330,038 $ 317,150 $ 647,188 5 Table of Contents Residenti al Real Estate Loans.
Removed
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.
Added
In 2020, the federal banking agencies adopted a final rule that established 9% as the CBLR, for 2022 and thereafter. In November 2025, the federal banking agencies, including the FDIC, issued a proposed rule to lower the community bank leverage ratio to 8%.
Removed
Under the final rule, banks with assets of at least $600 million as of December 31 in both of the prior two calendar years and less than $2 billion as of December 31 in either of the prior two calendar years will be an “intermediate bank.” The agencies will evaluate intermediate banks under the Retail Lending Test and either the current community development test, referred to in the final rule as the Intermediate Bank Community Development Test, or, at the bank’s option, the Community Development Financing Test.
Added
Bogota Savings Bank’s most recent Federal Deposit Insurance Corporation CRA rating in August 2023 was “Satisfactory.” In 2025, both houses of the New Jersey legislature introduced state-level community reinvestment bills, although they have not yet been signed into law. Consumer Protection and Fair Lending Regulations.
Removed
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.
Added
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. The Federal Home Loan Banks provide a central credit facility primarily for member institutions.
Removed
On March 29, 2024, a federal court in the Northern District of Texas issued a preliminary injunction of the new CRA regulations, enjoining the federal banking agencies from enforcing the regulations against the plaintiff bank industry trade groups, and extending the regulations' implementation dates day-for-day for each day the injunction is in place. Consumer Protection and Fair Lending Regulations.
Removed
As such Bogota Financial Corp. is subject to the information, proxy solicitation, insider trading restrictions and other requirements under the Securities Exchange Act of 1934. Emerging Growth Company Status.
Removed
Under the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), a company with pre-IPO total annual gross revenues of less than $1.07 billion during its most recently completed fiscal year qualifies as an “emerging growth company.” Bogota Financial Corp. qualifies as an emerging growth company under the JOBS Act.
Removed
An “emerging growth company” may choose not to hold stockholder votes to approve annual executive compensation (more frequently referred to as “say-on-pay” votes) or executive compensation payable in connection with a merger (more frequently referred to as “say-on-golden parachute” votes).
Removed
An emerging growth company also is not subject to the requirement that its auditors attest to the effectiveness of the company’s internal control over financial reporting, and can provide scaled disclosure regarding executive compensation; however, Bogota Financial Corp. will also not be subject to additional executive compensation disclosure so long as it remains a “smaller reporting company” under Securities and Exchange Commission regulations (generally less than $250 million of voting and non-voting equity held by non-affiliates).
Removed
Finally, an emerging growth company may elect to comply with new or amended accounting pronouncements in the same manner as a private company, but must make such election when the company is first required to file a registration statement. Such an election is irrevocable during the period a company is an emerging growth company.
Removed
Bogota Financial Corp. has elected to comply with new or amended accounting pronouncements in the same manner as a private company.
Removed
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).

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeA 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.
Biggest changeA significant decline in general economic conditions caused by inflation, recession, tariffs, 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 the markets in which we do business, the value of our loans, investments, and collateral securing our loans, the level of our classified assets, reduce the demand for our products and services, and/or adversely affect our financial results and our banking operations.
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.
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.
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.
Any change in such regulation and oversight, whether in the form of regulatory policy, new regulations, executive orders, 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.
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.
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, restrictions in federal subsidies or grants, 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.
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.
As of December 31, 2025 , 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 9.8% of to tal loans.
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.
At December 31, 2025 , the Company maintained a debt securities portfolio of $158.1 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.
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.
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 $35.6 million in cash, $136.6 million in secured borrowing capacity at the FHLB, and $54.0 million in unsecured lines of credit.
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.
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, 2025 , we he ld $45.1 million of deposits from municipalities in our primary market area in New Jersey.
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.
During the year ended December 31, 2025 , we booked other comprehensive gains of $2.1 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 $2.0 million.
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.
At December 31, 2025 , approximately $646.8 million, or 99.5% 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 , $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.
At December 31, 2025 , $180.9 million, or 27.8% 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 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.
Our non-owner occupied commercial real estate loans may expose us to increased credit risk. At December 31, 2025 , $87.3 million, or 13.4% of our total loan portfolio, consisted of loans secured by non-owner occupied commercial real estate loans. At December 31, 2025 , $13.7 million, or 2.11% of these loans were past due.
As a result of our historical focus on one- to four-family residential real estate loans, the majority of our loans have fixed interest rates. This can create significant earnings volatility because of changes in market interest rates.
As a result of our historical focus on one- to four-family residential real estate loans, the majority of our loans have fixed interest rates. This can create significant earnings volatility because of changes in market interest rates. Our interest-bearing liabilities generally have shorter contractual maturities than our interest-earning assets.
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.
Our assets decreased $66.5 million, or 6.8%, from $971.5 million at December 31, 2024 to $904.9 million at December 31, 2025 , 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.
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.
We are a smaller reporting company and 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. We qualify as a “smaller reporting company” under the federal securities laws.
However, stockholders will not be able to force a merger or a second-step conversion transaction without the consent of Bogota Financial, MHC since such transactions also require, under New Jersey and federal law, the approval of a majority of all of the outstanding voting stock, which can only be achieved if Bogota Financial, MHC votes to approve such transactions. 32 Table of Contents We are an emerging growth company and have elected to comply only with the reduced reporting and disclosure requirements applicable to emerging growth companies.
However, stockholders will not be able to force a merger or a second-step conversion transaction without the consent of Bogota Financial, MHC since such transactions also require, under New Jersey and federal law, the approval of a majority of all of the outstanding voting stock, which can only be achieved if Bogota Financial, MHC votes to approve such transactions. 32 Table of Contents Various factors may make takeover attempts more difficult to achieve.
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.
Certificates of depos it comprised $493.9 million or 75.7% of our total deposits at December 31, 2025 . Certificates of deposit due within one year of December 31, 2025 totaled $441.3 million, or 67.6% of total deposits. This included $109.7 million of brokered deposits, which represented 16.8% of total deposits.
As inflation increases and market interest rates rise the value of our investment securities, particularly those with longer maturities, decrease, although this effect can be less pronounced for floating rate instruments. In addition, inflation generally increases the cost of goods and services we use in our business operations, such as electricity and other utilities, which increases our non-interest expenses.
In addition, inflation generally increases the cost of goods and services we use in our business operations, such as electricity and other utilities, which increases our non-interest expenses.
Removed
Inflation risk is the risk that the value of assets or income from investments will be worth less in the future as inflation decreases the value of money. In response to a pronounced rise in inflation, the Federal Reserve Board has raised certain benchmark interest rates to combat inflation.
Added
If we foreclose on these loans, our holding period for the collateral typically is longer than for a single or multi-family residential property because there are fewer potential purchasers of the collateral.
Removed
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
Furthermore, if loans that are collateralized by commercial real estate become troubled and the value of the real estate has been significantly impaired, then we may not be able to recover the full contractual amount of principal and interest that we anticipated at the time we originated the loan, which could cause us to increase our provision for credit losses and adversely affect our operating results and financial condition.
Removed
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
Furthermore, the rates we earn on our other interest-earning assets and the rates we pay on our interest-bearing liabilities are generally fixed for a contractual period of time. This imbalance can create significant earnings volatility because market interest rates change over time.
Removed
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
Inflation risk can negatively impact the value of assets or income from investments as inflation decreases the value of money. Inflation rose sharply at the end of 2021 and remained elevated through the first half of calendar 2024, before beginning to moderate in the latter half of 2024 and into calendar 2025.
Removed
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
However, inflation levels continue to exceed the Federal Reserve Board’s long-term target of 2.0%. . As inflation increases and market interest rates rise the value of our investment securities, particularly those with longer maturities, decrease, although this effect can be less pronounced for floating rate instruments.
Removed
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
Additionally, changes in distribution of federal funds or freezing of federal funds, including reductions in federal workforce causing unemployment, could have an adverse effect on the ability of consumers and businesses to pay debts and/or affect the demand for loans and deposits.
Removed
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
The failure to maintain current technologies, and the costs to update technology, could negatively impact the Corporation's business and financial results. Our future success depends, in part, on our ability to effectively embrace technology to better serve customers and reduce costs.
Removed
In addition to qualifying as an emerging growth company, we qualify as a “smaller reporting company” under the federal securities laws.
Added
We have been required, and may be required in the future, to expend additional resources to employ the latest technologies. Failure to keep pace with technological change could potentially have an adverse effect on our business operations and financial condition and results of operations.
Removed
As such, our common stock may be less attractive to investors.
Removed
We are an emerging growth company and for as long as we continue to be an emerging growth company, we plan to take advantage of exemptions from various reporting requirements applicable to other public companies, including reduced disclosure obligations regarding executive compensation in our periodic reports and 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.
Removed
Investors may find our common stock less attractive as we rely on these exemptions. Even if we no longer qualify as an emerging growth company, as a smaller reporting company, we would still be eligible to use reduced disclosure requirements, which may make our common stock less attractive to investors.
Removed
Even if we no longer qualify as an emerging growth company, we may still qualify as a smaller reporting company. As such, we plan to take advantage of reduced disclosure obligations, including regarding executive compensation, in our periodic reports and proxy statements. As a result, investors may find our common stock less attractive.
Removed
As a smaller reporting company that is a non-accelerated filer, we also will not be subject to Section 404(b) of the Sarbanes-Oxley Act, which would require that our independent auditors review and attest to the effectiveness of our internal control over financial reporting. Various factors may make takeover attempts more difficult to achieve.

Item 2. Properties

Properties — owned and leased real estate

2 edited+0 added−0 removed0 unchanged
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 .
Biggest changeThe following table sets forth information regarding our offices as of December 31, 2025 : 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 $1,728 60 East Main Street Bogota, NJ 07603 Leased 2024 $48 181 Boulevard Hasbrouck Heights, NJ 07604 Leased 2024 $207 1719 Route 10 East Parsippany, NJ 07054 Leased 2021 $24 5527 Berkshire Valley Road Oak Ridge, NJ 07438 Owned 2021 $387 1039 South Orange Road Newark, NJ 07106 Leased 2024 $21 558 E Crescent Avenue Upper Saddle River, NJ 07458 Leased 2023 $401 Other Offices: 510 Warren Ave Spring Lake, NJ 07762 Leased 2021 $3 (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, 2024 , the net book value of our land, building and equipment w as $4.6 mill ion.
ITEM 2. Properties As of December 31, 2025 , the net book value of our land, building and equipment w as $4.4 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, 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.
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, 2025 , 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 4.
Added
Mine Safety Disclosures Not applicable. 35 Table of Contents PART II

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

4 edited+2 added−1 removed2 unchanged
Biggest changeThere 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).
Biggest changeOn August 12, 2025, the Company announced that it has received regulatory approval for the repurchase of up to 237,590 shares of its common stock, which is approximately 5% of its outstanding common stock (excluding shares held by Bogota Financial, MHC), as previously approved by the board of directors of the Company.
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.
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, 2026, B ogota Financial Corp. had approximately 613 stockholders of record.
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 2024.
The repurchase program does not have a scheduled expiration date and the Board of Directors may suspend or discontinue the program at any time. 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 2025.
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.
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, 2025 20,523 $ 8.79 20,523 212,246 November 1 - 30, 2025 21,628 8.52 21,628 190,618 December 1 - 31, 2025 29,701 8.30 29,701 160,917 Total 71,852 $ 8.51 71,852 ITEM 6.
Removed
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.
Added
There we re no sa les of unregistered securities during the quarter ended December 31, 2025 .
Added
Shares may be repurchased in open market or private transactions or pursuant to any trading plan that may be adopted in accordance with Rule 10b5-1 of the Securities and Exchange Commission. As of December 31, 2025, the Company repurchased 76,673 shares of its common stock, at a cost of $656,000, pursuant to this repurchase program.

Item 7. Management's Discussion & Analysis

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

67 edited+8 added−18 removed79 unchanged
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.
Biggest changeFor the Years Ended December 31, 2025 2024 Average Balance Interest and Dividends Yield/ Cost Average Balance Interest and Dividends Yield/Cost (Dollars in thousands) Assets: Cash and cash equivalents $ 17,390 $ 908 5.22 % $ 10,197 $ 606 5.94 % Loans 686,850 33,521 4.88 713,138 33,412 4.69 Securities 149,549 7,944 5.31 178,684 6,939 3.88 Other interest-earning assets 6,974 636 9.12 9,106 793 8.71 Total interest-earning assets 860,763 43,009 5.00 911,125 41,750 4.58 Non-interest-earning assets 58,254 59,511 Total assets $ 919,017 $ 970,636 Liabilities and Equity: NOW and money market accounts $ 73,918 1,792 2.42 $ 67,561 1,359 2.01 Savings accounts 49,298 1,025 2.08 43,975 821 1.87 Certificates of deposit 492,766 19,637 3.98 508,327 22,405 4.41 Total interest-bearing deposits 615,982 22,454 3.65 619,863 24,585 3.97 Federal Home Loan Bank advances (1) 127,933 5,084 3.97 175,997 6,614 3.76 Total interest-bearing liabilities 743,915 27,538 3.70 795,860 31,199 3.92 Non-interest-bearing deposits 31,008 31,572 Other non-interest-bearing liabilities 5,067 6,303 Total liabilities 779,990 833,735 Total equity 139,027 136,901 Total liabilities and equity $ 919,017 $ 970,636 Net interest income $ 15,471 $ 10,551 Interest rate spread (2) 1.29 % 0.66 % Net interest margin (3) 1.80 % 1.16 % Average interest-earning assets to average interest-bearing liabilities 115.71 % 114.48 % (1) Cash flow hedges are used to manage interest rate risk.
Our primary sources of non-interest income are banking fees and service charges, net gains in cash surrender value of bank-owned life insurance and miscellaneous income. Non-Interest Expenses. Our non-interest expenses consist of salaries and employee benefits, net occupancy, equipment, data processing, federal deposit insurance premiums, advertising, directors fees, professional fees and other general and administrative expenses.
Our primary sources of non-interest income are banking fees and service charges, net gains in cash surrender value of bank-owned life insurance and miscellaneous income. Non-Interest Expenses. Our non-interest expenses consist of salaries and employee benefits, net occupancy and equipment, data processing, federal deposit insurance premiums, advertising, directors fees, professional fees and other general and administrative expenses.
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.
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.
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.
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 credit 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.
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 believe that we had enough sources of liquidity to satisfy our short- and long-term liquidity needs as of December 31, 2025 . 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.
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.
At December 31, 2025 , 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.
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.
The following table presents the estimated changes in our net portfolio value that would result from changes in market interest rates at December 31, 2025 . All estimated changes presented in the table are within the policy limits approved by the board of directors.
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.
As of December 31, 2025 , net interest income simulation results indicated that its exposure over one year to changing interest rates was within our guidelines.
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.
During the twelve months ended December 31, 2025 and 2024 , the net effect on interest expense on Federal Home Loan Bank advances was a reduced ex pense of $664,000 and $1.5 million, 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.
At December 31, 2024 , we also had $54.0 million in unsecured lines of credit with four correspondent banks with no outstanding balances .
At December 31, 2025 , we also had $54.0 million in unsecured lines of credit with four correspondent banks with no outstanding balances .
Loss rates are estimated by utilizing the same loss rates calculated for the allowance general reserve. At December 31, 2024 , the Bank held $135,000 in reserves for unfunded liabilities, compared t o $152,000 as of December 31, 2023 . Contractual Obligations. In the ordinary course of our operations, we enter into certain contractual obligations.
Loss rates are estimated by utilizing the same loss rates calculated for the allowance general reserve. At December 31, 2025 , the Bank held $80,000 in reserves for unfunded liabilities, compared t o $135,000 as of December 31, 2024 . Contractual Obligations. In the ordinary course of our operations, we enter into certain contractual obligations.
Included in this amount was one construction loan, which is being actively managed by the Company totaling $10.9 million and is considered well-secured with a loan-to-value of 41% based on an appraisal performed in November 2024. We did not record any specific reserve, or charge-offs for this loan.
Included in this amount was a $10.9 million construction loan, which is being actively managed by the Company and is considered well-secured with a loan-to-value of 41% based on an appraisal performed in March 2025. We did not record any specific reserve, or charge-offs for this loan.
At December 31, 2024 , the Company’s ratio of average stockholders’ equity-to-total assets was 14.10%, compared to 15.24% at December 31, 2023 . Comparison of Operating Results for the Years Ended December 31, 2024 and 2023 General.
At December 31, 2025, the Company’s ratio of average stockholders’ equity-to-average total assets was 15.30%, compared to 14.10% at December 31, 2024. Comparison of Operating Results for the Years Ended December 31, 2025 and 2024 General.
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.
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 the sale/leaseback transaction we executed, renegotiating key third-party contracts and reducing other operating expenses.
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.
At December 31, 2024 , there were $14.0 million of non-performing assets, which represented 1.44% 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.
The allowance for credit losses is the amount estimated by management as necessary to absorb credit losses in the loan portfolio that are expected over the life of an exposure (or pool of exposures).
The following represents our critical accounting estimate: Allowance for Credit Losses. The allowance for credit losses is the amount estimated by management as necessary to absorb credit losses in the loan portfolio that are expected over the life of an exposure (or pool of exposures).
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.
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, 2025 , cash and cash equivalents totaled $35.6 million.
We are committed to actively monitoring and managing our loan portfolio in an effort to proactively identify and mitigate credit risks within the portfolio. At December 31, 2024 , non-performing assets totaled $14.0 million, which represented 1.44% of t otal assets.
We are committed to actively monitoring and managing our loan portfolio in an effort to proactively identify and mitigate credit risks within the portfolio. At December 31, 2025 , non-performing assets totaled $13.3 million, which represented 1.47% of t otal assets.
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 weighted average rate paid on borrowings was 4.35% and 4.49% as of December 31, 2025 and December 31, 2024 , respectively. The Company uses cash flow hedges to manage interest rate risk.
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.
During the twelve months ended December 31, 2025, the use of cash flow hedges reduced the interest expense on the Federal Home Loan Bank advances by $644,000, compared to $1.5 million for 2024.
At December 31, 2024 , cash flow hedges used to manage interest rate risk had a notional value of $65.0 million, while fair value hedges totaled $60.0 million in notional value.
At December 31, 2025, cash flow hedges used to manage interest rate risk had a notional value of $85.0 million, while fair value hedges totaled $60.0 million in notional value. Net Interest Income.
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.
Securities classified as available-for-sale, which provide additional sources of liquidity, totaled $158.1 million with a unrealized loss of $2.7 million at December 31, 2025 . 46 Table of Contents We are committed to maintaining a strong liquidity position. We monitor our liquidity position on a daily basis.
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.
As of December 31, 2025 , $443.9 million, or 68.3% 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.
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.
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.
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 .
The increase reflected a 63 basis point increase in our net interest rate spread to 1.29% for the twelve months ended December 31, 2025 from 0.66% for the twelve months ended December 31, 2024.
We anticipate that we will have sufficient funds to meet our current funding commitments. Certificates of deposit due within one year of December 31, 2024 totaled $450.1 million, or 70.0% of total deposits.
We anticipate that we will have sufficient funds to meet our current funding commitments. Certificates of deposit due within one year of December 31, 2025 totaled $441.3 million, or 67.6% of total deposits.
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 .
Our commercial real estate and multi-family loan portfolio decreased to $180.9 million, or 27.8% of total loans, at December 31, 2025 , from $192.2 million, or 26.9% of total loans, at December 31, 2024 . Increase lower-cost core deposits .
Our overhead ratio, defined as non-interest expense to average total assets, wa s 1.50% for the year ended December 31, 2024 compared to 1.69% for the year ended December 31, 2023 .
Our overhead ratio, defined as non-interest expense to average total assets, was 1.66% for the year ended December 31, 2025 compared to 1.66% for the year ended December 31, 2024.
This recovery in 2024 was inclusive of the effect of the transfer of certain securities from the held to maturity portfolio to the available for sale portfolio, which resulted in a $108,000 recovery for credit losses. Additionally, we recorded a $17,000 recovery of credit losses for contingent liabilities for the twelve months ended December 31, 2024 . Non-Interest Income.
This 2024 recovery was inclusive of the effect due to the transfer of certain securities from the held to maturity portfolio to the available for sale portfolio, which resulted in a $108,000 recovery for credit losses for the 2024 period. Non-Interest Income.
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 interest income increased $4.9 million, or 46.6%, to $15.5 million for the twelve months ended December 31, 2025 from $10.7 million for the twelve months ended December 31, 2024.
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.
At December 31, 2025 , we had the ability to borrow up to $232.8 million, of which $93.3 million was outstanding and $3.0 million was utilized as collateral for letters of credit issued to secure municipal deposits resulting in remaining availability of $136.6 million.
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, 2025 , municipal deposits totaled $45.1 million, which represented 6.9% of total deposits, and brokered deposits totaled $109.7 million, which represented 16.8% of total deposits. At December 31, 2024 , municipal deposits totaled $30.7 million, which represented 4.8% of total deposits, and brokered deposits tot aled $101.6 million, which represented 15.8% of total deposits. Borrowings.
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.
This increase was primarily due to an increase of $4.9 million in net interest income and an increase of $420,000 in non-interest income offset by an increase of $707,000 in non-interest expense and an increase of $353,000 in income tax. 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 (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.
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 (22.96) 300 bp (17.08) 200 bp (11.23) 100 bp (5.57) 0 0 (100) bp 4.78 (200) bp 9.77 (300) bp 13.63 (400) bp 12.93 (1) The calculated change in net interest income assumes an instantaneous parallel shift of the yield curve.
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.
The decrease was due to a 32 basis point decrease in the average cost of interest-bearing deposits to 3.65% for the twelve months ended December 31, 2025 from 3.97% for the twelve months ended December 31, 2024 and a $3.9 million decrease in the average balance of interest-bearing deposits.
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 .
The decrease in net loans reflected a $28.9 million, or 6.1%, decrease in one- to four-family residential real estate loans and home equity lines of credit to $443.9 million at December 31, 2025 from $472.7 million at December 31, 2024 , a decrease of $21.1 million, or 48.9%, in construction loans to $22.0 million at December 31, 2025 from $43.2 million at December 31, 2024 and an decrease of $11.3 million, or 5.8%, decrease in commercial and multi-family real estate loans to $180.9 million at December 31, 2025 from $192.1 million at December 31, 2024 .
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 expense on Federal Home Loan Bank borrowings decreased $1.5 million, or 23.1%, from $6.6 million for the twelve months ended December 31, 2024 to $5.1 million for the twelve months ended December 31, 2025.
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 .
Interest income on loans increased $109,000, or 0.3%, to $33.5 million for the twelve months ended December 31, 2025 compared to $33.4 million for the twelve months ended December 31, 2024 primarily due to a 19 basis point increase in the average yield from 4.69% for the twelve months ended December 31, 2024 to 4.88% for the twelve months ended December 31, 2025 offset by a $26.3 million decrease in the average balance to $686.9 million for the twelve months ended December 31, 2025 from $713.1 million for the twelve months ended December 31, 2024.
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 decrease was due to a decrease in the average balance of borrowings of $48.1 million to $127.9 million for the twelve months ended December 31, 2025 from $176.0 million for the twelve months ended December 31, 2024.
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.
Net loans decreased $64.1 million, or 9.0%, to $647.6 million at December 31, 2025 from $711.7 million at December 31, 2024 due to $105.1 million in repayments, partially offset by new originations of approximately $41.0 million.
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.
Interest income increased $1.3 million, or 3.0%, from $41.8 million for the twelve months ended December 31, 2024 to $43.0 million for the twelve months ended December 31, 2025 due to higher yields on interest-earning assets offset by lower average balances.
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.
Federal Home Loan Bank of New York borrowings decreased $78.9 million, or 45.8%, to $93.3 million at December 31, 2025 from $172.2 million at December 31, 2024 , due to repayments of $9.5 million from short-term advances and a decrease of $69.4 million in long-term advances.
At December 31, 2024 , th e Company ha d five interest rate swaps with a notional amount of $65.0 mill ion hedging on certain short-term FHLB advances. Total Equity.
At December 31, 2025 , th e Company ha d six interest rate swaps with a notional amount of $85.0 mill ion hedging on certain short-term FHLB advances. Borrowings decrease because of less need for wholesale funding with a decrease in assets and a increase in deposits. Total Equity.
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.
Other expense decreased $168,000, or 17.5%, due to lower miscellaneous expenses. Income Tax Expense. Income tax expense increased $353,000, to a benefit of $18,000 for the twelve months ended December 31, 2025 from a benefit of $372,000 for the twelve months ended December 31, 2024. The increase in expense was due to $4.1 million, or 118.0%, of higher taxable income.
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. At December 31, 2025 , core d eposits decreased to 24.3% o f our total deposits compared to 24.8% of our total deposits at December 31, 2024 .
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.
Interest income on securities increased $1.0 million, or 14.5%, to $7.9 million for the twelve months ended December 31, 2025 from $6.9 million for the twelve months ended December 31, 2024 due to a 143 basis point increase in the average yield from 3.88% for the twelve months ended December 31, 2024 to 5.31% for the twelve months ended December 31, 2025, offset by a $29.1 million decrease in the average balance of securities to $149.5 million for the twelve months ended December 31, 2025 from $178.7 million for the twelve months ended December 31, 2024.
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 expense decreased $3.7 million, or 11.7%, from $31.2 million for the twelve months ended December 31, 2024 to $27.5 million for the twelve months ended December 31, 2025 due to a lower average balance of and lower costs on interest-bearing liabilities.
Portfolio segment is defined as the level at which an entity develops and documents a systematic methodology to determine its allowance for credit losses (“ACL”). The Company has designated six portfolio segments, which are residential, commercial real estate, multi-family, construction, commercial and industrial and consumer.
The Company determines its allowance for credit losses (“ACL”) through an analysis of its loan portfolio segments. The Company has designated six portfolio segments, which are residential, commercial real estate, multi-family, construction, commercial and industrial and consumer.
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.
We recorded a $130,000 recovery of credit losses for the twelve months ended December 31, 2025 compared to a $148,000 recovery for credit losses for the twelve-month period ended December 31, 2024 which reflected a decrease in the loan portfolio, as well as no charge-offs during the years.
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 .
Interest expense on interest-bearing deposits decreased $2.1 million, or 8.7%, to $22.5 million for the twelve months ended December 31, 2025 from $24.6 million for the twelve months ended December 31, 2024.
We use the same credit policies in making commitments as we do for on-balance sheet instruments. At December 31, 2024 , we had $7.9 million of commitments to originate loans, comprised of $562,000 of residential loans, $7.0 million of commitments for commercial real estate loans and $299,000 of commitments of home equity loans and lines of credit.
We use the same credit policies in making commitments as we do for on-balance sheet instruments. At December 31, 2025 , we had $1.3 million of commitments to originate loans, comprised of $1.3 million of commitments of home equity loans and lines of credit. See Note 15 in the Notes to the consolidated financial statements for further information.
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.
The increase was due to a reduction in the accumulated other comprehensive loss on the securities portfolio of $1.5 million and net income of $2.1 million, offset by the repurchase of 123,603 shares of stock at a total cost of $1.1 million.
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 .
Net income increased by $4.3 million, or 196.3%, to net income of $2.1 million for the twelve months ended December 31, 2025, compared to a net loss of $2.2 million for the twelve months ended December 31, 2024.
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.
Interest income on cash and cash equivalents increased $302,000, or 49.8%, to $908,000 for the twelve months ended December 31, 2025 from $606,000 for the twelve months ended December 31, 2024 due to a $7.2 million increase in the average balance to $17.4 million for the twelve months ended December 31, 2025 from $10.2 million for the twelve months ended December 31, 2024, offset by a 72 basis point decrease in the average yield from 5.94% for the twelve months ended December 31, 2024 to 5.22% for the twelve months ended December 31, 2025 due to the lower interest rate environment for most of 2025.
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 changes was also due to a slight change in the composition of the deposit portfolio as the average balances of certificates of deposit decreased $15.6 million to $492.8 million for the twelve months ended December 31, 2025 from $508.3 million for the twelve months ended December 31, 2024 while NOW and money market accounts and savings accounts increased $6.4 million and $5.3 million for the twelve months ended December 31, 2025, respectively, compared to the twelve months ended December 31, 2024.
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.
The decrease was offset by an increase in the average cost of 22 basis points to 3.97% for the twelve months ended December 31, 2025 from 3.76% for the twelve months ended December 31, 2024 due to maturity of low cost borrowings.
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.
The effective tax rate for the twelve months ended December 31, 2025 and December 31, 2024 were (0.88%) and (14.62%), 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.
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.
Grow through opportunistic bank or branch acquisitions or formations. We are opening a new branch in Point Pleasant during the second quarter of 2026, which we hope will be an additional source for deposit growth. We will consider acquisition opportunities that may enhance the value of our franchise and yield potential financial benefits for our stockholders.
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.”
Interest rates do not necessarily move in the same direction or to the same extent as the prices of goods and services.
NPV NPV as Percent of Portfolio Value of Assets (Dollars in thousands) Basis Point (“bp”) Change in Interest Rates Dollar Amount Dollar Change Percent Change NPV Ratio Change 400 bp $ 145,580 $ (93,432 ) (39.09 )% 10.01 % 24.93 % 300 bp 170,281 (68,731 ) (28.76 ) 11.09 (19.87 ) 200 bp 191,764 (47,248 ) (19.77 ) 11.99 (13.37 ) 100 bp 214,962 (24,050 ) (10.06 ) 12.93 (6.58 ) 0 239,012 — — 13.84 — (100) bp 262,014 23,002 9.62 14.68 6.07 (200) bp 283,551 44,539 18.63 15.36 10.98 (300) bp 302,731 63,719 26.66 15.99 15.53 (400) bp 323,313 84,301 35.27 16.83 21.60 Certain shortcomings are inherent in the methodologies used in the above interest rate risk measurements.
NPV NPV as Percent of Portfolio Value of Assets (Dollars in thousands) Basis Point (“bp”) Change in Interest Rates Dollar Amount Dollar Change Percent Change NPV Ratio Change 400 bp $ 95,145 $ (49,387 ) (39.09 )% 11.52 % (39.52 )% 300 bp 107,616 (36,916 ) (28.76 ) 12.75 (20.71 ) 200 bp 119,228 (25,304 ) (19.77 ) 13.84 (13.93 ) 100 bp 131,356 (13,176 ) (0.09 ) 14.94 (7.09 ) 0 144,532 — — 16.08 — (100) bp 156,929 12,397 9.62 17.09 6.28 (200) bp 168,367 23,835 18.63 17.97 11.75 (300) bp 179,331 34,799 26.66 18.75 16.60 (400) bp 191,277 46,745 35.27 19.63 22.08 Certain shortcomings are inherent in the methodologies used in the above interest rate risk measurements.
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.
The decrease in the average cost of deposits was due to the lower interest rate environment, which primarily impacted the rates paid on certificates of deposit, which remain the largest portion of the portfolio.
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.
Year Ended December 31, 2025 vs 2024 Increase (Decrease) Due to Volume Rate Net (In thousands) Interest income: Cash and cash equivalents $ 383 $ (81 ) $ 302 Loans receivable (1,254 ) 1,363 109 Securities (1,258 ) 2,263 1,005 Other interest-earning assets (193 ) 36 (157 ) Total interest-earning assets (2,322 ) 3,581 1,259 Interest expense: NOW and money market accounts 137 296 433 Savings accounts 105 99 204 Certificate of deposit (664 ) (2,104 ) (2,768 ) Federal Home Loan Bank advances (1,887 ) 357 (1,530 ) Total interest-bearing liabilities (2,309 ) (1,352 ) (3,661 ) Net decrease in net interest income $ (13 ) $ 4,933 $ 4,920 Comparison of Financial Condition at December 31, 2025 and December 31, 2024 Total Assets.
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.
As of December 31, 2025 , the Bank had no loans held for sale. 42 Table of Contents Regulatory Stock. Regulatory stock decreased $3.5 million or 39.4% to $5.4 million at December 31, 2025 from $4.7 million as of December 31, 2024, the decrease was due to a reduction in borrowings. Investment in limited partnership.
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 .
Total stockholders’ equity increased $3.6 million to $140.9 million at December 31, 2025, from $137.3 million at December 31, 2024.
These increases were partially offset by a $3.0 million decrease in net loans and a $3.0 million decrease in net premises and equipment. Cas h and Cash Equivalents. Total cash and cash equivalents increased $27.3 million, or 109.5%, to $52.2 million at December 31, 2024 from $24.9 million at December 31, 2023 .
Total assets decreased $66.6 million, or 6.9%, to $904.9 million at December 31, 2025 from $971.5 million at December 31, 2024 . The decrease was primarily due to a $64.1 million decrease in loans and $16.6 million decrease in cash and cash equivalents, offset by a $17.8 million increase in securities available for sale. Cas h and Cash Equivalents.
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 .
Cash and cash equivalents decreased $16.6 million, or 31.8%, to $35.6 million at December 31, 2025 from $52.2 million at December 31, 2024 . This decrease was primarily due to cash used to purchase securities. Investment Securities. Securities available for sale increased $17.8 million, or 12.7%, to $158.1 million at December 31, 2025 from $140.3 million at December 31, 2024.
Our net interest margin decreased 55 basis points to 1.16% for the twelve months ended December 31, 2024 from 1.71% for the twelve months ended December 31, 2023 . The Bank entered into a sale-leaseback transaction whereby the Bank sold three of its branch offices resulting in a $9.0 million pre-tax gain.
Our net interest margin increased 64 basis points to 1.80% for the twelve months ended December 31, 2025 from 1.16% for the twelve months ended December 31, 2024. Provision for (recovery of) Credit Losses.
Removed
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.
Added
Average yields on securities available for sale increased 143 basis points from 3.88% for the twelve months ended December 31, 2024, to 5.31% for the twelve months ended December 31, 2025, due to the balance sheet restructuring that took place in December 2024. Net Loans.
Removed
The JOBS Act, which was enacted in 2012, contains provisions that, among other things, reduce certain reporting requirements for qualifying public companies. As an “emerging growth company,” we plan to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies.
Added
The Company made a $2.5 million equity investment as part of a $10 million commitment to fund a limited partnership that invests in sale leaseback transactions. Deposits.
Removed
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.
Added
Total deposits at December 31, 2025 were $652.4 million, increasing $10.3 million, or 1.6%, as compared to $642.2 million at December 31, 2024, primarily due to a $14.8 million increase in interest-bearing deposits offset by a $4.5 million decrease in non-interest bearing checking accounts.
Removed
The increase was primarily due to $27.3 million increase in cash and cash equivalents and a $10.8 million increase in right of use assets related to leases that were signed as part of the sale-leaseback transaction that was completed during the fourth quarter of 2024.
Added
The average rate paid on deposits decreased 43 basis points to 3.30% for 2025 from 3.73% for 2024 due to lower market interest rates and an increase in NOW accounts, which increased $10.5 million, or 19.0%, to $65.5 million at December 31, 2025 from $55.0 million at December 31, 2024 primarily due to a increase in municipal deposits.
Removed
In the fourth quarter of 2024, the Bank sold approximately $66.0 million in amortized cost ($57.1 million in market value) of available-for-sale and held-to-maturity securities with a weighted average life of approximately 5.5 years and a weighted average yield of 1.89% resulting in a pre-tax loss of $8.9 million. $32.7 million of the proceeds from the securities sales were reinvested into securities yielding approximately 5.60% and a weighted average life of approximately 29.6 years.
Added
Both the increase in the yield and the decrease in the average balance of securities was due to the balance sheet restructuring effected in December 2024. 43 Table of Contents Interest Expense.
Removed
As a result of the sales, the Bank removed the held-to-maturity designation on any remaining held-to-maturity securities. At December 31, 2023 , held to maturity securities totaled $72.7 million. Net Loans.
Added
Non-interest income increased by $420,000, or 31.1%, primarily due to an increase in bank owned life insurance of $564,000, or 64.7%, due to collection of death proceeds in 2025 offset by a decrease of $84,000 in other income due to a net loss on the investment in a limited partnership. Non-Interes t Expenses.
Removed
The was no new bank-owned life insurance purchased in 2024. Deposits. Total deposits increased $16.8 million, or 2.7%, to $642.1 million at December 31, 2024 from $625.3 million at December 31, 2023 .

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