Bogota Financial Corp. (BSBK): History, Ownership, Mission, How It Works & Makes Money

Bogota Financial Corp. (BSBK) is a fascinating case study in how a century-old community bank navigates today's volatile interest rate environment, but are you clear on how its core model is holding up? This New Jersey-based holding company, which traces its roots back to 1893, reported total assets of $925.8 million as of September 30, 2025, and notably swung to a net income of $1.4 million for the first nine months of the year, reversing a prior-year loss. We need to dig into the mechanics of that turnaround-especially since its Price-to-Book ratio is still sitting at a value-oriented 0.8x-to understand its true financial health and future trajectory.

Bogota Financial Corp. (BSBK) History

Bogota Financial Corp. (BSBK) is the publicly traded holding company for Bogota Savings Bank, an institution whose roots stretch back over 130 years into the community banking landscape of New Jersey. You should view BSBK as a modern, capitalized entity built on a deep foundation of local savings and loan history, but with a recent, significant pivot to public ownership and strategic expansion.

The company's journey from a local building and loan association to a Nasdaq-listed corporation with $925.8 million in total assets as of September 30, 2025, reflects a continuous adaptation to regulatory changes and market opportunities, culminating in its current structure as a two-tier mutual holding company.

Given Company's Founding Timeline

Year established

The institution was originally established in 1893.

Original location

Its roots are firmly planted in Bogota, Bergen County, New Jersey.

Founding team members

Founded by local businessman William Smith, who aimed to provide banking services for his employees at Bogota Paper Mills, and New York banker Victor Ludwig, who provided the necessary expertise.

Initial capital/funding

The original Bogota Building and Loan Association was capitalized through membership shares and deposits from the community, typical for a late 19th-century mutual association (precise 1893 figures are not available). The modern holding company, Bogota Financial Corp., raised $56.6 million in gross proceeds from its 2020 initial public offering (IPO).

Given Company's Evolution Milestones

Given Company's Transformative Moments

The most defintely transformative moment was the January 2020 mutual holding company reorganization and subsequent IPO. This structural shift allowed the Bank to raise external capital, moving from a purely mutual structure to a stock-based one while retaining the majority control by Bogota Financial, MHC.

This capital infusion enabled two clear actions:

• Fueling Acquisition: Used capital to acquire Gibraltar Bank in 2021, immediately expanding its branch network and customer base across northern and central New Jersey.

• Stabilizing Profitability: The flexibility from the IPO capital helped navigate market volatility, leading to a return to core profitability in the third quarter of 2025, reporting net income of $455,000 for the quarter.

Here's the quick math on the IPO: selling 5,657,735 shares at the offering price of $10.00 per share gave the company a war chest of $56.6 million in gross proceeds. That's the cash that fundamentally changed its growth trajectory.

A more recent signal of strategic health is the August 2025 approval of the sixth stock repurchase program. This move, authorizing the buyback of approximately 5% of its outstanding common stock (excluding MHC shares), is a clear action to enhance shareholder value and manage capital efficiency. This focus on capital management is crucial for a regional bank with $925.8 million in total assets.

To be fair, the nine-month net income of $1.4 million for the period ending September 30, 2025, included a non-core $543,000 one-time death benefit from a bank-owned life insurance policy. What this estimate hides is that while core operations improved, the one-time benefit provided a significant boost to the reported net income, so sustained net interest income and lower funding costs are the real near-term opportunity.

For a detailed breakdown of the Bank's operating principles, you should review the Mission Statement, Vision, & Core Values of Bogota Financial Corp. (BSBK).

Bogota Financial Corp. (BSBK) Ownership Structure

The ownership structure of Bogota Financial Corp. is defintely unique, rooted in its mutual holding company (MHC) form, which means a significant majority of the company is controlled by its parent, Bogota Financial, MHC, ensuring a long-term, community-focused governance model.

This structure means that while the stock trades publicly on the NASDAQ, the parent MHC holds a controlling stake, a common arrangement for former mutual savings banks that have undergone a 'second-step' conversion to raise capital while maintaining their mutual identity for depositors.

Bogota Financial Corp.'s Current Status

Bogota Financial Corp. (BSBK) is a publicly traded Maryland corporation and the mid-tier holding company for Bogota Savings Bank, a New Jersey-chartered savings institution. As of November 2025, the stock is listed on the Nasdaq Capital Market under the ticker BSBK.

The company operates under a two-tier mutual holding company structure, where the parent entity, Bogota Financial, MHC, holds a majority of the outstanding common stock. This arrangement provides a capital structure that supports the bank's total assets of $925.8 million as of September 30, 2025, a decrease of 4.7% from December 31, 2024. The structure is designed to insulate the bank from short-term market pressures, but still requires the company to file quarterly and annual reports, like the recent Q3 2025 report showing net income of $455,000.

Bogota Financial Corp.'s Ownership Breakdown

The company's ownership is heavily concentrated in the hands of its mutual holding company parent, which effectively controls the firm's strategic direction. Here's the quick math on the share distribution, based on the most recent filings:

To be fair, the institutional ownership of 7.8% is relatively low for a public company, which is a direct consequence of the large, non-traded stake held by the MHC. This low float-the percentage of shares available for public trading-can sometimes lead to higher stock price volatility. You can dig deeper into who is buying and why by Exploring Bogota Financial Corp. (BSBK) Investor Profile: Who's Buying and Why?

Bogota Financial Corp.'s Leadership

The leadership team is a mix of seasoned banking professionals with deep roots in the community banking sector. They are responsible for steering the company's direction, including managing the balance sheet which saw total deposits increase to $646.8 million as of September 30, 2025.

The executive team and Board of Directors, as of November 2025, provide the governance structure:

• Kevin Pace: President and Chief Executive Officer (CEO). He was appointed in November 2023, and has been an integral part of the management team since 2013.
• Brian McCourt: Executive Vice President (EVP) and Chief Financial Officer (CFO).
• Robert Walsh: Executive Vice President (EVP) and Chief Lending Officer (CLO).
• John Masterson: Chairman of the Board of Directors.

The average tenure of the management team is approximately 4.8 years, showing a stable and experienced core group guiding the bank's strategy. Their focus remains on balancing growth, like the $1.4 million in net income for the nine months ended September 30, 2025, with prudent risk management.

Bogota Financial Corp. (BSBK) Mission and Values

Bogota Financial Corp., the holding company for Bogota Savings Bank, is defintely a community-first institution; its core purpose goes beyond quarterly earnings to focus on local service and financial soundness.

This deep commitment to its New Jersey communities is the cultural DNA, guiding all strategic decisions from lending to technology investment, and it is the foundation that supports their $925.8 million in total assets as of September 30, 2025. [cite: 4 in previous step]

Bogota Financial Corp.'s Core Purpose

The bank's core purpose is simple but powerful: community-centric banking and personalized financial services. This focus is why their loan portfolio is heavily concentrated in the local market, ensuring capital is reinvested where their customers live and work.

Official mission statement

The mission is consistently centered on serving the comprehensive financial needs of its local New Jersey communities. This means providing personalized service and sound financial guidance to three key groups:

• Individuals and families seeking homeownership and savings.
• Local businesses needing capital for growth.
• The community-at-large through targeted reinvestment.

To be fair, a community bank's mission should always be local; the challenge is executing it while maintaining a strong balance sheet, which is why a net income of $1.4 million for the first nine months of 2025 is a good sign of mission-driven execution. [cite: 9 in previous step]

Vision statement

The long-term vision for Bogota Financial Corp. is straightforward: to be the preferred community financial institution in its market area. This isn't about being the biggest, but about being the most trusted and essential. Achieving this requires a consistent, high-touch approach to their $646.8 million in total deposits. [cite: 4 in previous step]

The Bogota Savings Bank Charitable Foundation, Inc. directly supports this vision, aiming to drive impactful community progress across affordable housing, education, arts, health & human services, and neighborhood revitalization. This is a concrete action, not just a goal.

Bogota Financial Corp. slogan/tagline

The company's slogan clearly anchors its identity in its history and location. It's a simple statement that cuts through the noise.

• Your Community Bank Since 1893.

Core Values: The Cultural Compass

These values are the non-negotiables that dictate how the bank operates daily, from the teller line to the executive suite. They are the framework for how they deploy capital and treat their customers.

• Integrity: Upholding high ethical standards in all dealings.
• Community Focus: Actively supporting and reinvesting in the local neighborhoods served.
• Customer Service: Providing personalized, responsive, and friendly service.
• Financial Prudence: Ensuring the safety and soundness of the institution for depositors and stakeholders.
• Respect: Valuing employees, customers, and the community.

Here's the quick math on their commitment: in connection with the reorganization, the company issued 263,150 shares of common stock and $250,000 in cash to the Charitable Foundation, a substantial initial commitment that demonstrates their 'Community Focus' value in real dollars and equity. [cite: 10 in previous step] You can explore more about the Mission Statement, Vision, & Core Values of Bogota Financial Corp. (BSBK).

This is how a community bank differentiates itself: by making its values an operational reality. It's a crucial factor for long-term stability and investor confidence in a regional banking environment.

Bogota Financial Corp. (BSBK) How It Works

Bogota Financial Corp., through its subsidiary Bogota Savings Bank, operates as a traditional, community-focused savings institution in New Jersey, primarily generating revenue by taking local deposits and reinvesting those funds into a diversified portfolio of residential and commercial loans and securities.

The core business model is straightforward: attract deposits-your checking and savings accounts-as a low-cost source of funds, and then lend that money out at higher interest rates, which creates the net interest income (NII) that drives profitability. For the nine months ended September 30, 2025, the company reported a net income of $1.4 million, a significant turnaround from the prior year's loss, showing this model is currently working well for them.

Given Company's Product/Service Portfolio

Given Company's Operational Framework

The company's operational framework is built around efficient asset-liability management (ALM) and a strong community banking presence, which helps them manage interest rate risk and acquire low-cost funding. Honestly, a community bank's success comes down to how well it manages its balance sheet and its local relationships.

• Funding Strategy: Focus on retaining and growing core deposits-like savings and checking accounts-to reduce reliance on higher-cost funding sources, though they still use brokered and municipal deposits. Total deposits increased by 0.7% to $646.8 million in the first nine months of 2025.
• Strategic Repositioning: A key move in late 2024/early 2025 was a balance sheet restructuring. This involved selling about $66.0 million in lower-yielding securities and reinvesting the proceeds into higher-yielding securities (around 5.49%) and new loans (ranging from 6.50% to 7.75%).
• Value Creation: The primary value lever is the Net Interest Margin (NIM), which expanded to 1.80% in the third quarter of 2025. This expansion is due to the higher yields on new loans and securities, plus lower deposit costs.
• Risk Management: Maintain a conservative lending profile. The allowance for credit losses related to loans was only 0.38% of total loans at September 30, 2025, and they have limited exposure to high-risk commercial real estate, like office space.

Given Company's Strategic Advantages

Bogota Financial Corp.'s advantages aren't about being a defintely cutting-edge fintech; they are about being a focused, well-capitalized local bank that knows its market and is making smart, tactical balance sheet moves. This focus is detailed in their Mission Statement, Vision, & Core Values of Bogota Financial Corp. (BSBK).

• Local Market Expertise: Serving northern and central New Jersey since 1893 provides deep, long-standing customer relationships and a granular understanding of the local real estate and business markets in Bergen County.
• Favorable Valuation: The company's Price-to-Book ratio is currently around 0.8x, which is notably lower than the US Banks industry average of 1x. This relative discount can attract value-oriented investors if the recent profitability turnaround is sustained.
• Capital Efficiency & Shareholder Focus: The strategic sale-leaseback of three branch offices generated a one-time pre-tax gain of $9.0 million, which strengthened regulatory capital without relying on traditional equity raises. Plus, they have an approved share repurchase program for up to 237,590 shares, a clear signal of management's confidence in the stock's value.
• Improved Earnings Quality: The recent swing to profitability-net income of $455,000 in Q3 2025-is driven by core banking activities like increased net interest income, not just one-off items. That's a good sign for future momentum.

Bogota Financial Corp. (BSBK) How It Makes Money

Bogota Financial Corp., the holding company for Bogota Savings Bank, makes money primarily through the classic banking model: borrowing low and lending high, which generates net interest income. They collect deposits from customers and then use those funds to originate loans and purchase securities, profiting from the interest rate spread (net interest margin).

Bogota Financial Corp.'s Revenue Breakdown

For the first nine months of the 2025 fiscal year, Bogota Financial Corp.'s total operating revenue (Net Interest Income plus Non-interest Income) was approximately $12.7 million, showing a significant reliance on its core lending and investment activities.

The core engine, Net Interest Income, saw a robust increase of 38.9% for the nine months ended September 30, 2025, compared to the same period in 2024. Non-interest income, while a smaller slice, grew substantially, but this figure includes a one-time, non-recurring death benefit of approximately $543,000 from a bank-owned life insurance policy (BOLI).

Business Economics

The entire business model hinges on managing the net interest margin (NIM)-the difference between the interest earned on assets and the interest paid on liabilities. For the third quarter of 2025, the company's NIM was 1.80%, a 65-basis point jump over the prior year, reflecting better management of funding costs and higher asset yields.

The bank's asset composition shows where the revenue is earned, and it's heavily weighted toward real estate lending in Northern New Jersey. They've been actively shifting their balance sheet, too, reducing cash and paying down expensive borrowings to improve that margin.

• Primary Assets: Net loans totaled $669.2 million as of September 30, 2025, which is the main source of interest income.
• Loan Mix: The portfolio is concentrated in residential mortgages (about 55%) and commercial real estate (around 35%), a typical profile for a community bank.
• Funding Costs: Total deposits stood at $646.8 million as of September 30, 2025, which is the bank's cheapest source of funding, plus they reduced their reliance on more expensive Federal Home Loan Bank (FHLB) advances by 30.6%.
• Fee Income: Non-interest income is generated through standard banking fees, service charges, and income from BOLI, which provides a small, defintely less volatile, revenue stream separate from interest rate risk.

You can see the full picture of their investor base and strategy here: Exploring Bogota Financial Corp. (BSBK) Investor Profile: Who's Buying and Why?

Bogota Financial Corp.'s Financial Performance

The company has made a material turnaround, returning to profitability in the first nine months of 2025 after posting a loss in the comparable period of 2024. This shift is key for evaluating the sustainability of the business model in the current rate environment.

• Net Income: For the nine months ended September 30, 2025, Bogota Financial Corp. reported net income of $1.4 million, a significant swing from a net loss of $1.2 million in the same period last year.
• Total Assets: The balance sheet has shrunk slightly, with total assets at $925.8 million as of September 30, 2025, a decrease of 4.7% from year-end 2024, as the bank used cash to pay down borrowings.
• Asset Quality: A near-term risk to watch is asset quality; delinquent loans increased to 3.24% of total loans, largely due to one nonaccrual commercial real estate loan.
• Capital Strength: Stockholders' equity increased to $140.7 million at September 30, 2025, and the company maintains a strong capital position, with a leverage ratio of 13.34% as of March 31, 2025, well above regulatory minimums.

Here's the quick math on profitability for the nine-month period: Return on Assets (ROA) is approximately 0.15% and Return on Equity (ROE) is about 0.99%. These are low but reflect the recent turnaround from a loss position and the conservative nature of a community bank. Sustaining the improved net interest income is the primary action needed to drive these ratios higher.

Bogota Financial Corp. (BSBK) Market Position & Future Outlook

Bogota Financial Corp. is actively working to shift its financial profile, successfully turning a prior-year loss into a net income of $1.4 million for the nine months ended September 30, 2025. This turnaround is built on a strategy of optimizing its balance sheet and focusing on higher-yield commercial lending, but it still operates as a small, community-focused player in a market dominated by multi-billion dollar regional banks. Mission Statement, Vision, & Core Values of Bogota Financial Corp. (BSBK).

Competitive Landscape

Bogota Financial Corp. (BSBK) operates primarily in the highly competitive Northern New Jersey market, specifically Bergen County. The bank's local deposit market share is small, placing it in direct competition with significantly larger regional institutions. Here's a snapshot of the competitive landscape, using the most recent available local deposit market share data for BSBK and illustrative regional market share percentages for its much larger competitors:

Opportunities & Challenges

The bank's forward-looking strategy centers on improving its net interest margin (NIM) and growing its commercial portfolio, but it faces headwinds from the broader economic environment. Honestly, every regional bank is fighting the same deposit war right now.

Industry Position

Bogota Financial Corp. is a classic community bank, and its position reflects that. It's not a market leader in scale, but it's focused on operational efficiency and credit quality to drive returns.

• The bank's total assets stood at $925.8 million as of September 30, 2025, a 4.7% decrease from the end of 2024, reflecting a conscious effort to shrink the balance sheet and pay down borrowings.
• Its Price-to-Book (P/B) ratio of 0.8x (as of November 2025) is below the US Banks industry average of 1.0x, suggesting the stock is valued at a discount to its book value compared to peers. This discount signals muted growth expectations from the market, despite the recent swing to profitability.
• The ratio of average stockholders' equity-to-total assets improved to 14.97% at September 30, 2025, up from 13.99% at the end of 2024, showing a stronger capital position.
• Management's focus on credit quality is evident; the bank has limited exposure to commercial real estate loans secured by office space, which is a defintely smart move in this market.