Breaking Down Bogota Financial Corp. (BSBK) Financial Health: Key Insights for Investors

You've seen the headlines, and honestly, the turnaround at Bogota Financial Corp. (BSBK) is a story worth digging into, but the numbers tell a more nuanced tale than a simple return to black. For the nine months ended September 30, 2025, the company reported a net income of $1.4 million, a solid swing from a $1.2 million net loss in the same period last year, driven by a quarterly net interest income jump of 46.6% to $3.9 million and a wider net interest margin of 1.80%. Still, you have to be a realist: the balance sheet shrank, with total assets dipping 4.7% to $925.8 million, mainly because net loans decreased 6.0% to $669.2 million as management paid down borrowings. This is a classic trade-off-improved profitability now, but less asset base for future growth, so the real opportunity lies in their push toward commercial lending and the new regulatory-approved share buyback program for up to 237,590 shares. We defintely need to see if they can execute on that commercial expansion while managing the nonaccruals noted in their existing commercial real estate book.

Revenue Analysis

You're looking at Bogota Financial Corp. (BSBK) because you see a stock trading below book value (Price-to-Book ratio of 0.8x as of November 2025) and want to know if the recent return to profitability is sustainable. The short answer is: the core business is improving defintely, but you need to strip out a one-time gain to see the true growth rate.

The company's total operating revenue for the nine months ended September 30, 2025, hit approximately $12.7 million, a solid increase of about 40.64% from the $9.03 million reported in the same period last year. This top-line expansion is a significant turnaround from a five-year period where earnings slid by an average of 40.7% per year.

Primary Revenue Sources and Growth Drivers

As the holding company for Bogota Savings Bank, Bogota Financial Corp. (BSBK)'s revenue streams are straightforward, coming primarily from two segments: Net Interest Income (NII) and Non-Interest Income. NII-the money made from loans and investments minus the cost of funding-is the core engine, and it's finally expanding materially.

The biggest driver is the material expansion in Net Interest Income, which increased by $3.1 million, or 38.9%, to $11.2 million for the nine months ended September 30, 2025, compared to the $8.1 million in the prior year period. This is a direct result of management's balance sheet restructuring efforts, which have widened the net interest margin (NIM) by 55 basis points to 1.73%. That's a clear, positive signal on the core banking function.

• Net Interest Income: Core business strength, up 38.9%.
• Non-Interest Income: Boosted by a one-time, non-recurring event.
• Net Interest Margin: Expanded to 1.73%, showing better pricing power.

Segment Contribution and the BOLI Effect

The non-interest side of the business saw an even larger percentage jump, but you have to look closely at the source. Non-Interest Income increased by $612,000, or 65.9%, to $1.5 million for the nine months ended September 30, 2025. This looks fantastic on paper, but here's the quick math on what's driving it:

The bulk of that non-interest growth came from an increase in Bank-Owned Life Insurance (BOLI) income, which rose by $564,000. This includes a one-time, non-taxable death benefit of approximately $543,000 related to a former employee. To be fair, excluding that one-time BOLI benefit, the underlying non-interest income growth is minimal, so you can't count on this segment to repeat its 2025 performance next year.

What this estimate hides is that the $543,000 BOLI gain is not a sustainable revenue stream. The true, organic revenue growth is concentrated in the NII, which is a good sign for the health of the lending book and funding costs. Still, the overall 40.64% growth rate is inflated by a one-time event.

If you want to dig deeper into the balance sheet shifts that made this possible, check out the full post on Breaking Down Bogota Financial Corp. (BSBK) Financial Health: Key Insights for Investors. Your next step should be to model the NII growth rate-the 38.9%-forward and see if the valuation still makes sense without the one-time BOLI boost.

Profitability Metrics

You're seeing the headlines that Bogota Financial Corp. (BSBK) is finally back in the black, and you want to know if this is a real turnaround or just a lucky quarter. The direct takeaway is this: BSBK has made a critical move from a net loss to a net income, but its core profitability ratios still trail the industry, signaling a high-cost operation that needs to sustain its recent revenue growth.

For a bank, the most important profitability measure isn't Gross Profit; it's the Net Interest Margin (NIM), which is the spread between what they earn on loans and pay on deposits. This is the lifeblood of a community bank. BSBK's NIM for the third quarter of 2025 (Q3 2025) was a low 1.80%. Here's the quick math on why that matters: the average NIM for US community banks (institutions with less than $10 billion in assets, like BSBK) typically ranges from 3.5% to 4.5%. BSBK is running at less than half the industry standard, even after a strong 65 basis point increase year-over-year.

The good news is the trend is defintely positive. The bank reported a net income of $455,000 in Q3 2025, reversing a net loss of $367,000 in the same quarter last year. For the nine months ended September 30, 2025, net income hit $1.4 million, a significant swing from a $1.2 million loss in the prior-year period. This move was powered by a 46.6% quarterly increase in Net Interest Income, which is the core revenue driver.

Operational Efficiency: The Cost Drag

The real headwind is operational efficiency. We look at the Efficiency Ratio, which is non-interest expense divided by total revenue (Net Interest Income plus Non-Interest Income). It tells you how much it costs to generate one dollar of revenue. For Q3 2025, BSBK's non-interest expense was $3,737,924 against total revenue of approximately $4.2 million. That translates to a high Efficiency Ratio of about 88.67%.

• Industry Average: US banks generally aim for an Efficiency Ratio in the 56% to 61% range.
• BSBK's Reality: The high 88.67% ratio means BSBK spends nearly 89 cents to make one dollar, leaving very little room for profit before provisions and taxes.

This high-cost structure is what keeps the Operating Profit Margin (or Pre-Provision Net Revenue margin) so low, at about 11.33% for Q3 2025. They are making money, but they are spending too much to do it. The Net Profit Margin for the quarter was about 10.80%, which is a massive improvement from negative territory but still fragile.

Profitability Ratios: BSBK vs. Peers (Q3 2025)

You need to see the numbers side-by-side to understand the challenge. This isn't about one great quarter; it's about closing a structural gap. The core profitability metrics show that while BSBK is moving in the right direction, its cost base is a major anchor.

The positive is that management is focused on core interest income growth, which is the only way to overcome the cost hurdle. You can see their stated long-term goals and strategy, which will need to address this efficiency gap, by reviewing their Mission Statement, Vision, & Core Values of Bogota Financial Corp. (BSBK).

Your next step is clear: Track the Q4 2025 earnings release for a sustained increase in Net Interest Income and a measurable drop in the Efficiency Ratio toward the 80% mark. That's the first sign of a sustainable model.

Debt vs. Equity Structure

Bogota Financial Corp. (BSBK) has been actively restructuring its balance sheet, pivoting toward a lower reliance on wholesale funding, which is a key de-risking move. Your takeaway is simple: the company is using retained earnings and asset sales to pay down higher-cost debt, defintely strengthening its capital position in a challenging rate environment.

As of September 30, 2025, Bogota Financial Corp.'s total debt stood at approximately $119.4 million. This figure is a combination of both short-term and long-term borrowings, primarily Federal Home Loan Bank (FHLB) advances, which are a common funding source for community banks. They are actively managing this debt.

• Long-term borrowings (FHLB advances) decreased significantly by $58.3 million, or 40.8%, from the prior year's end, landing at $84.4 million.
• Short-term borrowings, however, saw a modest increase of $5.5 million, rising to $35.0 million.
• Total stockholders' equity increased by $3.4 million to $140.7 million, supporting a healthier capital base.

Here's the quick math on the company's capital structure: with total debt at $119.4 million and total stockholders' equity at $140.7 million, the Debt-to-Equity (D/E) ratio works out to roughly 0.85:1. This is a very conservative D/E ratio, especially for a financial institution, which often operates with higher leverage. This lower ratio indicates a strong reliance on equity to fund its assets, which is a positive sign of financial stability.

The strategic balance between debt financing and equity funding is clearly skewed toward capital preservation and reduction of funding costs. Management is using capital gained from asset sales and improved net income to pay down borrowings, a move that directly improves net interest margin (NIM). Plus, the company received regulatory approval in August 2025 for a share repurchase program of up to 237,590 shares, signaling a commitment to returning capital to shareholders and supporting the stock's valuation, which currently trades at a Price-to-Book ratio of 0.8x, below the US Banks industry average of 1x. This is a value play. For a deeper look into the firm's overarching strategy behind these financial decisions, you should review the Mission Statement, Vision, & Core Values of Bogota Financial Corp. (BSBK).

While the focus on debt reduction is positive, outside analysts have given Bogota Financial Corp. a 'Main Rating' of B- and a 'Sell' recommendation, citing historical earnings pressure despite the recent return to profitability. This suggests that while the balance sheet is getting cleaner, the market still needs to see sustained earnings growth to fully embrace the turnaround story. Your next step should be to monitor the Q4 2025 earnings release for continued debt paydown and NIM improvement.

Liquidity and Solvency

You're looking for a clear picture of Bogota Financial Corp. (BSBK)'s near-term health, and for a bank, that means looking past the standard Current Ratio (Current Assets/Current Liabilities) and Quick Ratio. These traditional metrics are less informative here because a bank's primary liabilities are customer deposits, which are its core funding, not short-term debt in the typical corporate sense. Still, the underlying components tell a powerful story about liquidity management.

As of September 30, 2025, the key is the ratio of liquid assets to deposits. Bogota Financial Corp. held $31.2 million in cash and cash equivalents, a significant 40.2% drop from the end of 2024, but this was a deliberate move. Plus, the company held $160.7 million in securities, mostly available-for-sale, which are highly liquid. Against this, total deposits stood at $646.8 million.

• Liquid Assets to Deposits: The combined liquid assets (Cash + Securities) total $191.9 million. Dividing this by total deposits gives a ratio of approximately 0.30.
• Working Capital Trend: The balance sheet is shrinking-total assets fell by 4.7% to $925.8 million. This isn't a sign of distress; it's a controlled reduction in the balance sheet, largely driven by a 5.9% decrease in total liabilities to $785.1 million, primarily via paying down expensive borrowings.

This deliberate reduction in the balance sheet is a strong signal of risk management. They are using cash to reduce their reliance on wholesale funding, which is defintely a smart move in a high-rate environment. You can review the strategic rationale behind these capital decisions in their Mission Statement, Vision, & Core Values of Bogota Financial Corp. (BSBK).

Cash Flow Statement Overview: Where the Cash Went

The cash flow statement for the nine months ended September 30, 2025, shows a clear strategic focus on de-risking and positioning for the future. The net change in cash was a decrease of $21.0 million. Here's the quick math:

The decrease in cash was a direct result of using funds to reduce borrowings and increase the securities portfolio. This is a strategic shift: trading a large cash balance for a lower debt load and a higher-quality, more liquid securities portfolio. The net loan portfolio decreased by 6.0% to $669.2 million as repayments outpaced new production, which also provided cash for other uses.

Near-Term Liquidity Strengths and Concerns

The primary strength is the intentional deleveraging. By reducing total borrowings by $52.8 million and increasing their securities holdings to $160.7 million, Bogota Financial Corp. has lowered its funding risk and improved its on-balance-sheet liquidity. This is sound financial management. The main concern, however, is the reliance on certificates of deposit (CDs), which increased by $9.3 million to $502.5 million. CDs are rate-sensitive funding; if interest rates change, managing the cost of these deposits will be a continuous pressure point. The overall liquidity position is stable, but the cost of funding remains the key variable to watch.

Next Step: Portfolio Managers should model a 50 basis point increase in the average cost of deposits to assess the impact on the Net Interest Margin (NIM) for the next two quarters.

Valuation Analysis

You're looking at Bogota Financial Corp. (BSBK) and wondering if the price you see reflects the true value of the business. That's the right question to ask, especially for a regional bank navigating a tricky interest rate environment. The short answer: Bogota Financial Corp. is trading cheaply on a book value basis, but its earnings multiples suggest a high price for current profitability, making it a nuanced 'Hold' for now.

Here's the quick math on where Bogota Financial Corp. stands as of late 2025, using the most recent fiscal year data.

Is Bogota Financial Corp. Overvalued or Undervalued?

For a bank, we lean heavily on book value. Bogota Financial Corp. is trading below its tangible book value, which often flags an undervalued stock, but the sky-high Price-to-Earnings (P/E) ratio tells a story of recent earnings struggles. This is common with smaller banks transitioning back to profitability.

The P/E ratio of 218.85x is a flashing light, but you need to understand the context. It's so high because the last twelve months (LTM) of net income were extremely low or negative, not because the stock price is wildly inflated. For the nine months ending September 30, 2025, Bogota Financial Corp. reported net income of only $1.4 million, or $0.11 per diluted share, a significant improvement from the prior year's loss, but still compressed.

Book Value Discount and Earnings Recovery

The real opportunity here is the Price-to-Tangible Book Value (P/TBV). With a stock price around $8.36 and a Tangible Book Value Per Share of $10.74, the P/TBV is approximately 0.78x. This means you are buying the bank's core assets-its loans, securities, and cash-at a 22% discount. For a regional bank, trading below 1.0x Tangible Book Value is defintely a value signal, provided the bank can sustain its return to profitability.

• Buy assets at a 22% discount to book value.
• Monitor net interest margin (NIM) expansion closely.
• The negative EV/EBITDA of -110.37x simply reflects a negative LTM EBITDA of -$2.05 million. A negative multiple is a mathematical anomaly, not a valuation tool; it just signals a loss.

Stock Trends and Analyst Consensus

The stock has shown resilience, with a 52-week price range between $6.59 and $9.50. The 52-Week Price Change is a modest 12.71%, suggesting a gradual, rather than explosive, recovery over the past year. The market is waiting for sustained earnings.

The analyst community reflects this cautious optimism. The consensus rating is a Hold, with an average price target of $8.50. This target is only slightly above the current price, confirming the market sees limited near-term upside until profitability is more firmly established.

One key point: Bogota Financial Corp. does not currently pay a common stock dividend, so dividend yield and payout ratios are not applicable for this analysis. This is a growth-or-value play, not an income play. For a deeper dive into who is buying the stock, you should read Exploring Bogota Financial Corp. (BSBK) Investor Profile: Who's Buying and Why?

Your action: Treat Bogota Financial Corp. as a value play predicated on a successful earnings turnaround. The P/TBV discount is attractive, but the high P/E demands proof of sustained net income growth in the coming quarters.

Risk Factors

You're looking at Bogota Financial Corp. (BSBK)'s recent turnaround and asking the right question: what are the near-term risks that could derail this progress? Honestly, while the third quarter of 2025 showed a return to profitability, the underlying risks-especially in asset quality and loan demand-are real and require your attention. A seasoned analyst never focuses just on the net income line; you have to look at the balance sheet's weak points.

The core of Bogota Financial Corp.'s risk profile is a mix of market-driven headwinds and specific credit challenges. The external environment-high interest rates and muted economic growth-is directly impacting their primary business line, lending. This is not unique to Bogota Financial Corp., but it hits them hard as a regional bank.

Operational & Financial Risks: A Closer Look at the Balance Sheet

The most immediate financial risk is the contraction of the loan portfolio. In the nine months leading up to September 30, 2025, net loans decreased by a significant $42.5 million, or 6.0%, to $669.2 million. This decline, driven by lower demand for residential mortgages and construction loans, makes it harder to grow net interest income (NII) going forward. You can't out-earn a shrinking asset base for long.

Also, watch the asset quality. Non-performing assets (NPAs) have been on the rise. At September 30, 2025, NPAs reached $20.5 million, representing 2.21% of total assets. This is a noticeable jump from the end of 2024. Here's the quick math on their credit protection:

• Allowance for Credit Losses (ACL) to Total Loans: 0.38% at September 30, 2025.
• ACL to Non-Performing Loans (NPLs): 12.42% at September 30, 2025.

The low coverage ratio of NPLs by the ACL suggests that a significant default could require a larger-than-expected provision, eating into future earnings. They are managing the risk, but the exposure is growing.

External & Strategic Risks: Market and Regulatory Headwinds

The company's recent profitability, while welcome, was partially inflated by a non-recurring event. The net income of $1.4 million for the nine months ended September 30, 2025, included a one-time, non-taxable death benefit of approximately $543,000 from a bank-owned life insurance (BOLI) policy. What this estimate hides is that core earnings are still thin, and you can't rely on BOLI payouts every quarter.

On the funding side, the bank relies on more volatile and potentially higher-cost sources. Brokered deposits accounted for $112.9 million, or 17.5% of total deposits, at September 30, 2025. High reliance on non-core funding can be a major vulnerability if market liquidity tightens. Plus, the broader regulatory environment in 2025 is focused on financial resilience, cybersecurity, and operational controls, which means higher compliance costs for all banks, including Bogota Financial Corp.

Mitigation Strategies and Investor Action

Bogota Financial Corp. is defintely not sitting still, which is a positive sign. They are actively managing their interest rate risk (IRR) exposure, which is smart given the rate environment. They use interest rate hedges with a total notional value of $145.0 million-specifically $85.0 million in cash flow hedges and $60.0 million in fair value hedges-as of September 30, 2025.

Furthermore, they executed a strategic balance sheet restructuring in late 2024, which included selling $66.0 million in lower-yielding securities to reinvest the proceeds into higher-yielding assets and pay down expensive borrowings. This move, despite an $8.9 million pre-tax loss on the securities sale, is a long-term strategic play to improve the net interest margin (NIM).

To summarize their key actions:

Your next step is to monitor the trend in delinquent loans and the core NII, excluding the one-time BOLI gain. For a deeper dive into the bank's valuation and strategy, check out the full post: Breaking Down Bogota Financial Corp. (BSBK) Financial Health: Key Insights for Investors.

Growth Opportunities

Bogota Financial Corp. (BSBK) is currently focused on profitability and efficiency, not aggressive top-line expansion. The near-term growth story is a margin-driven turnaround, stemming from a decisive balance sheet cleanup rather than a surge in new lending volume.

Honestly, the market view is cautious; neither revenue nor earnings are currently expected to grow significantly based on the latest company risk assessment. Still, the strategic moves made in late 2024 and early 2025 are defintely creating a stronger foundation, which is the real opportunity here.

Core Growth Driver: Net Interest Margin Expansion

The biggest driver for Bogota Financial Corp.'s improved 2025 performance is a successful balance sheet restructuring, which directly boosted the net interest margin (NIM). This strategic initiative involved shedding low-yield assets and paying down high-cost debt.

For the nine months ended September 30, 2025, the NIM increased by 55 basis points to 1.73%, and for Q3 2025, it hit 1.80%, up 65 basis points from the prior year quarter. This improvement is why the company reported a net income of $1.4 million for the nine-month period, a sharp reversal from a $1.2 million loss in the comparable period last year. Here's the quick math on the restructuring:

This repositioning is a clear signal: use capital more efficiently. The Q3 2025 net interest income jumped by 46.6%, or $1.2 million, to $3.9 million, showing the plan is working.

Strategic Initiatives and Competitive Advantages

Bogota Financial Corp. is fortifying its financial position through capital management and a local competitive moat. The focus is on commercial expansion and credit quality, which aligns with prudent regional banking trends. Plus, they are reducing reliance on wholesale funding, a smart move in a high-rate environment.

• Debt Reduction: Federal Home Loan Bank advances decreased by $52.8 million, a 30.6% drop, to $119.4 million as of September 30, 2025.
• Capital Returns: The company received regulatory approval in August 2025 for a share repurchase program of up to 237,590 shares, or approximately 5% of its outstanding common stock.
• Asset Diversification: A $2.5 million equity investment was made toward a $10 million commitment in a limited partnership focused on sale-leaseback transactions.

The company's Price-to-Book ratio of 0.8x is a notable competitive advantage, sitting well below the US Banks industry average of 1x and the peer average of 1.1x. This discount suggests a compelling value proposition for investors who believe the recent profitability is sustainable, even with the backdrop of earnings having slid by an average of 40.7% per year over the last five years. To be fair, that low valuation is a function of the past, not necessarily the future.

Product and Market Context

The core business remains community-focused in Bergen County and surrounding areas in northern New Jersey. Bogota Financial Corp. (BSBK) leverages its long-standing heritage to foster customer relationships through personalized service and local decision-making. Product innovations center on improving access, including electronic banking services like online and mobile platforms. You can learn more about their long-term vision here: Mission Statement, Vision, & Core Values of Bogota Financial Corp. (BSBK).

What this estimate hides is that while NIM is up, net loans actually declined by 6.0% to $669.2 million as of September 30, 2025, and total assets fell 4.7% to $925.8 million, indicating a shrinking balance sheet. The next step is simple: watch for management's updated loan growth guidance in the Q4 2025 earnings call. If they can maintain the margin gains and start growing the loan book modestly, the turnaround narrative gains real traction.