Bogota Financial Corp. (BSBK): Business Model Canvas [Apr-2026 Updated]

You're digging into how Bogota Financial Corp. (BSBK) actually makes money, especially after their 2025 strategic shift away from riskier funding. Honestly, for a community bank with $925.8 million in total assets as of September 30, 2025, their model hinges on balancing that deep-rooted, personalized service-a hallmark since 1893-with a more stable balance sheet, supported by $646.8 million in core deposits and $119.4 million in Federal Home Loan Bank advances. We've mapped out exactly how they turn that local trust and their $669.2 million net loan portfolio into Net Interest Income (NII) and what their key costs are, so you can see the whole picture clearly below.

Bogota Financial Corp. (BSBK) - Canvas Business Model: Key Partnerships

Bogota Financial, MHC serves as the foundational partner, holding a 67.47% stake in Bogota Financial Corp. as of March 20, 2025, owning 8,504,556 shares of common stock as of March 27, 2025. Bogota Financial, MHC is the entity that owns a majority of Bogota Financial Corp.'s common stock.

Wholesale liquidity and core funding rely on key financial arrangements, specifically with the Federal Home Loan Bank (FHLB) and brokered deposit networks. The balances for these sources shift based on the Company's management of its funding profile.

The management of these liabilities involves hedging strategies. For the three months ended September 30, 2025, the use of hedges reduced the interest expense associated with Federal Home Loan Bank advances and brokered deposits by $205,000.

For loan origination flow, Bogota Financial Corp. works with external parties, though specific partnership metrics aren't always detailed. The Bank noted a decrease in demand for residential and construction loans, which typically drive loan growth, due to the interest rate environment as of late 2025. The Company also engaged in an equity investment as part of a larger commitment with an external entity:

• Equity investment of $2.5 million made as part of a $10 million commitment to fund a limited partnership that invests in sale leaseback transactions.

Bogota Financial Corp. (BSBK) - Canvas Business Model: Key Activities

You're looking at the core engine of Bogota Financial Corp. (BSBK), the activities that actually drive their day-to-day banking and investment decisions as of late 2025. It's all about managing money in and money out, plus making smart moves with the balance sheet.

Core deposit gathering from individuals and businesses

Gathering core deposits is the lifeblood, keeping the funding costs manageable. As of September 30, 2025, total deposits for Bogota Financial Corp. stood at $646.8 million. This was a slight increase from the $642.2 million reported at the end of 2024. The average cost of deposits showed some volatility; it was 3.73% for the full year 2024, ticked up to an average of 3.55% in the first quarter of 2025, and the interest expense on interest-bearing deposits for the three months ending June 30, 2025, was $5.5 million.

Here's a breakdown of the deposit base as of the end of 2024, which informs the current activity:

They focus on managing the mix, as seen by the growth in certificates of deposit (CDs) being a key component, though the average balance of CDs decreased by $35.4 million for the three months ended June 30, 2025.

Originating residential and commercial real estate (CRE) loans

The second core activity is putting that deposit money to work by originating loans, primarily in real estate. Bogota Financial Corp. offers one-to-four-family residential real estate loans, along with commercial real estate and multi-family loans. Net loans stood at $669.2 million as of September 30, 2025. This represents a decline from $711.7 million at the close of 2024.

The loan production activity in the fourth quarter of 2024 saw new production of $61.2 million offset by $63.8 million in repayments. Management has emphasized a focus on credit quality and modest loan growth moving into 2025. Origination rates for new loans were noted to be in the range of 6.50% to 7.75% during the Q4 2024 restructuring discussions.

Active balance sheet restructuring and risk management via hedges

This is where you see management actively shaping the balance sheet to improve profitability, especially after the rate environment shifts. A major restructuring was completed in the fourth quarter of 2024.

• Sale-leaseback of three branch offices generated a $9.0 million pre-tax gain.
• Sale of approximately $66.0 million (amortized cost) in securities resulted in an $8.9 million pre-tax loss.
• Proceeds were used to fund loans at rates up to 7.75% and pay down higher cost borrowings.

Risk management through hedging is also key. During the three months ended June 30, 2025, the use of hedges reduced interest expense on Federal Home Loan Bank (FHLB) advances and brokered deposits by $186,000. As of that same date, the notional value of cash flow hedges was $65.0 million, with fair value hedges at $60.0 million. The reliance on FHLB advances has been actively reduced; they stood at $119.4 million as of September 30, 2025, a decrease of 30.6% from the prior year.

Managing and growing the investment securities portfolio

The investment securities portfolio is managed to generate yield while maintaining liquidity. The portfolio stood at $140.3 million at the end of 2024. Following the Q4 2024 sales, the portfolio was $137.7 million at March 31, 2025, but management reinvested proceeds, pushing the balance up to $160.7 million by September 30, 2025.

The strategic shift involved selling lower-yielding assets and buying higher-yielding ones:

This activity is paying off in income generation; interest income on securities increased by 10.9% for the three months ended September 30, 2025, compared to the prior year period. The net interest margin (NIM) also expanded significantly, reaching 1.80% in Q3 2025, a 65 basis point improvement year-over-year.

Finance: draft Q4 2025 asset allocation plan by January 15th.

Bogota Financial Corp. (BSBK) - Canvas Business Model: Key Resources

The Key Resources for Bogota Financial Corp. (BSBK) center on its tangible financial base, its deposit franchise, and its physical presence in the Northern New Jersey market as of late 2025.

Tangible Financial Assets

The balance sheet forms the primary tangible resource base. You can see the scale of the operation in the total assets figure reported for the end of the third quarter.

The total assets figure of $925.8 million at September 30, 2025, reflects a slight contraction from the end of the prior year, largely due to decreases in cash and cash equivalents and net loans. Still, the deposit base remains substantial, providing the primary funding source for lending activities.

Deposit Franchise and Funding Stability

The stability of the funding structure is a critical resource, directly tied to the core deposit base. This base supports the bank's lending capacity and interest income generation.

• Total deposits stood at $646.8 million on September 30, 2025.
• This total deposit figure reflected a modest increase of 0.7% from December 31, 2024.
• Certificates of deposit grew by $9.3 million to reach $502.5 million.
• Savings accounts increased by $5.7 million to total $52.6 million.

Physical Infrastructure and Market Presence

The physical branch network serves as the tangible touchpoint for the customer relationship segment, which is vital for attracting and retaining deposits in the local market. Bogota Financial Corp. maintains its operational footprint exclusively within New Jersey.

The key physical locations supporting the business include:

• Bogota Branch
• Teaneck Branch (Corporate Headquarters)
• Hasbrouck Heights Branch
• Newark Branch
• Oak Ridge Branch
• Parsippany Branch

Non-Interest Income Assets

Bank-owned life insurance (BOLI) policies represent an investment asset class that contributes to non-interest income, providing a tax-advantaged return stream. The financial impact of these policies is evident in recent earnings reports.

For the nine months ended September 30, 2025, the company recognized a one-time death benefit of approximately $543,000 from a BOLI policy related to a former employee, which was a non-taxable event. This non-interest income source helps offset operational costs and bolsters overall profitability when realized.

Bogota Financial Corp. (BSBK) - Canvas Business Model: Value Propositions

Bogota Financial Corp. offers a value proposition rooted in its long-standing presence, with the underlying Bogota Savings Bank tracing its history back to 1893.

You receive a full suite of traditional deposit and lending products designed for individuals and small businesses in the Northern New Jersey market. The deposit offerings include demand accounts, savings accounts, money market accounts, and certificate of deposit accounts.

On the lending side, the bank provides one-to four-family residential real estate loans, commercial real estate and multi-family loans, consumer loans such as home equity loans and lines of credit, commercial and industrial loans, and construction loans.

The focus on improved financial stability and a de-risked funding profile is evident in recent balance sheet management actions. Management aggressively paid down wholesale funding sources, which supports margin resilience amid rate uncertainty.

Here's the quick math on the funding profile shift as of September 30, 2025, compared to the end of 2024:

The reduction in wholesale reliance is significant; Federal Home Loan Bank advances decreased by $52.8 million, or 30.6%, between December 31, 2024, and September 30, 2025. Also, brokered deposits stood at $112.9 million, representing 17.5% of total deposits, as of September 30, 2025. The average rate paid on deposits for the first three quarters of 2025 was 3.69%.

The bank emphasizes local decision-making, which translates into faster loan approvals for its community base. This local control is a core strength for Bogota Financial Corp.

• Net Interest Margin (NIM) for Q3 2025 reached 1.80%.
• Net income for the nine months ended September 30, 2025, was $1.4 million.
• Net interest income for Q3 2025 increased by 46.6% to $3.9 million.
• The company repurchased 4,821 shares for a cost of $42,000 under a new buyback program as of September 30, 2025.

Bogota Financial Corp. (BSBK) - Canvas Business Model: Customer Relationships

Bogota Financial Corp., through Bogota Savings Bank, centers its Customer Relationships on a high-touch, relationship-based service model. This approach is fundamental to maintaining the trust built over the bank's history dating back to 1893. The strategy is designed to foster long-term loyalty, especially given the bank's focus on local community and business needs in New Jersey.

The commitment to personal service is evident in the staffing structure dedicated to lending. While the holding company, Bogota Financial Corp., reported 61 full-time equivalent employees as of the third quarter of 2025, the lending function relies on specialized personnel to manage client relationships closely. You see this dedication in roles such as:

• Vice President Commercial Portfolio Manager (as of August 2025).
• Senior Vice President, Loan Sales.
• Vice President, Internal Residential Loan Manager.
• Business Development Officer.

This structure supports the delivery of customized solutions for both commercial and mortgage clients, ensuring that decisions are made locally, which is a key differentiator for a community bank.

The bank's lending portfolio reflects the segments where these dedicated relationships are most critical. The focus remains on real estate secured lending, which requires in-depth client and property assessment, reinforcing the need for dedicated loan officers. Here's a look at the loan book as of March 31, 2025, compared to year-end 2024:

The slight shift in the loan mix, with commercial and multi-family loans growing while residential mortgages decreased as of June 30, 2025, shows the active management by the lending team to capitalize on specific market opportunities, a direct result of strong client relationships.

Community support is formalized through the Bogota Savings Bank Charitable Foundation, which acts as a tangible expression of the bank's commitment to the area it serves. While the most recent full-year giving data available is for 2024, it shows the scale of this relationship-building effort. The foundation does not accept unsolicited applications, suggesting a targeted, relationship-driven approach to its philanthropy as well.

• Foundation Total Assets (as of 2024): $2.0 million.
• Foundation Total Giving (in 2024): $145K.
• Number of Grants Awarded (in 2024): 35.
• Median Grant Size (in 2024): $3K.

This foundation work helps solidify the bank's standing as a dedicated community partner, not just a transactional lender. You need to keep those local ties strong. Finance: draft 13-week cash view by Friday.

Bogota Financial Corp. (BSBK) - Canvas Business Model: Channels

You're looking at how Bogota Financial Corp. (BSBK) gets its value proposition to the customer base as of late 2025. It's a mix of the physical presence they maintain and the digital tools they offer, which is typical for a community bank navigating modern expectations.

The physical footprint remains important, especially in their northern New Jersey market. As of 2025, Bogota Financial Corp. is operating over 7 locations. These branches are the core touchpoints for relationship banking, handling everything from new mortgage applications to complex cash management needs for local businesses.

• Full-service retail branch locations: 7 physical offices, including the Teaneck Branch & Corporate Headquarters.
• Specific locations include: Bogota, Hasbrouck Heights, Newark, Oak Ridge, Parsippany, and Upper Saddle River (USR), in addition to the Teaneck headquarters.

The digital side is where you see the bank keeping pace with the broader industry. They offer online banking and mobile applications to handle routine transactions, which is critical given the industry trend where many customers prefer digital for simple tasks. For instance, the bank is focused on electronic banking services which include online and mobile banking platforms, remote deposit capture, and automated clearinghouse (ACH) capabilities for account holders. This digital channel supports the balance sheet management seen in early 2025, where total assets stood at $930.2 million as of March 31, 2025. The deposit base, a key funding source channeled through these platforms, was $646.8 million as of September 30, 2025.

For lending, which is a primary revenue driver, Bogota Financial Corp. relies on specialized personnel rather than just branch foot traffic. The loan origination teams and mortgage specialists handle the underwriting for residential mortgage loans, home equity lines of credit, and commercial/multi-family mortgages. Net loans, the result of this channel's activity, were reported at $701.5 million at the end of Q1 2025. This focus on specialized teams helps manage credit quality, a stated priority for management.

Regarding ATM network access, while specific network size isn't explicitly detailed for 2025 in the latest reports, the physical branches listed often include 24-Hour Drive-thru ATM or 24-Hour Walk Up ATM access. For example, the Bogota Branch and Parsippany Branch both feature 24-Hour Drive-thru ATM access. This provides customers with immediate, non-teller access to cash.

Here's a quick look at the scale of the balance sheet that these channels support as of the first three quarters of 2025:

The bank has been actively managing its funding mix, using excess liquidity to pay down borrowings, such as the $32.4 million reduction in Federal Home Loan Bank advances reported in Q1 2025. This balance sheet restructuring directly impacts the stability of the funding available through all customer channels.

Bogota Financial Corp. (BSBK) - Canvas Business Model: Customer Segments

You're looking at the core client base for Bogota Financial Corp. (BSBK) as of the third quarter of 2025. The Bank's operations are firmly rooted in serving the local economy of Northern New Jersey.

Individuals and families in the Northern New Jersey market.

This segment forms the foundation of the deposit base. Bogota Savings Bank operates from seven offices across New Jersey, including locations in Bogota, Teaneck, Newark, and Parsippany, serving the banking needs of northern and central New Jersey since 1893. At September 30, 2025, total deposits stood at $646.8 million. Uninsured deposits represented 9.2% of this total at that date. The loan portfolio, which stood at $669.2 million net as of September 30, 2025, includes one-to-four-family residential real estate loans and consumer loans like home equity lines of credit, which directly serve this segment.

Local municipalities and public entities.

Bogota Financial Corp. maintains direct relationships with local government bodies through specialized deposit accounts. Municipal deposits accounted for $33.5 million of the total deposit base, which translates to 5.2% of total deposits as of September 30, 2025. The Bank has explicitly noted its continued reliance on municipal deposits in its risk disclosures.

Real estate investors focused on multi-family and CRE.

This group is served through specific lending products. While net loans decreased by 6.0% to $669.2 million by September 30, 2025, the composition of the loan book reflects this focus. Looking at the most recent detailed breakdown from December 31, 2022, Commercial and Multi-Family Real Estate Loans totaled $162.3 million, representing 22.5% of the total loan portfolio at that time. Within that, commercial real estate loans were $96.0 million, and multi-family real estate loans were $66.3 million.

Small to medium-sized local businesses (SMBs).

SMBs are targeted through commercial and industrial loans and a suite of treasury management services. These services are designed to streamline operations and include cash concentration, remote deposit capture, fraud prevention, and payroll services. The commercial and industrial loan category is a component of the overall net loan balance of $669.2 million as of September 30, 2025. The Bank stated a dedication to continued growth in its commercial portfolio as of June 30, 2025.

Here's a quick look at the scale of the funding base supporting these customer relationships as of late 2025:

The Bank is actively managing its funding mix, having reduced Federal Home Loan Bank advances by 30.6% to $119.4 million by September 30, 2025, from year-end 2024 levels.

Finance: draft 13-week cash view by Friday.

Bogota Financial Corp. (BSBK) - Canvas Business Model: Cost Structure

You're looking at the core expenses Bogota Financial Corp. (BSBK) is facing to run its business as of late 2025, primarily drawing from the nine months ended September 30, 2025, figures. For a bank, the cost of funding-what you pay to get the money you lend out-is usually the single biggest line item, and that's definitely the case here.

The interest expense tied directly to customer deposits has been a significant cost driver, though it saw some relief recently. For the nine months ended September 30, 2025, the interest expense on interest-bearing deposits was $16.9 million. This was an improvement, showing an 8.0% decrease from the prior year period, largely because the average cost of deposits dropped by 26 basis points to 3.69% for the nine months ended September 30, 2025.

The funding structure also relies on wholesale sources, specifically borrowings from the Federal Home Loan Bank (FHLB). At the end of the third quarter, September 30, 2025, the balance of FHLB advances stood at $119.4 million, representing a 30.6% decrease from the end of 2024. The interest paid on these FHLB advances for the third quarter alone was $1.1 million.

To get a clearer picture of the total interest cost associated with all borrowings (FHLB advances plus any other borrowings), we can look at the total interest expense. For the nine months ended September 30, 2025, total interest expense was $20.9 million. By subtracting the interest expense on deposits, we can estimate the total interest expense on borrowings for that nine-month period:

Here's the quick math: Total Interest Expense ($20.9M) minus Interest Expense on Deposits ($16.9M) suggests the total interest expense on borrowings was approximately $4.0 million for the nine months ended September 30, 2025. This reflects the overall strategy of reducing funding costs by paying down borrowings.

Beyond the interest paid on liabilities, the non-interest expenses-the day-to-day operational costs-are also key. While I don't have the specific 2025 dollar breakdown for personnel and general/administrative costs, the trend in non-interest expense is notable. For the six months ended June 30, 2025, total non-interest expense increased by 4.7% over the comparable 2024 period. Furthermore, the latest reports indicate that non-interest expense increased due to specific areas like occupancy costs, which were up 68.0%, and professional fees, which rose by 45.6%.

You need to track these non-interest components closely, as they represent the fixed and semi-variable costs of running the two offices in Bogota and Teaneck, New Jersey.

Here is a summary of the key cost structure components for Bogota Financial Corp. (BSBK) based on the latest available data:

The non-interest expenses, which include personnel and G&A, are the other major bucket of costs you must monitor. The 2024 data showed that Salaries and employee benefits decreased by $776,000 for the three months ended December 31, 2024, due to lower headcount. Still, the 2025 trend shows increases in other operational areas like occupancy and professional fees.

You'll want to see the full breakdown of non-interest expense in the next 10-Q filing to see if personnel costs have stabilized or increased following any hiring adjustments. Finance: draft 13-week cash view by Friday.

Bogota Financial Corp. (BSBK) - Canvas Business Model: Revenue Streams

The primary revenue engine for Bogota Financial Corp. (BSBK) remains the spread earned between interest-earning assets and interest-bearing liabilities, supplemented by fee-based services and one-time gains.

Net Interest Income (NII) from loan and securities spread shows material expansion, reflecting balance sheet restructuring completed in late 2024 and effective hedging programs. For the three months ended September 30, 2025, net interest income increased by 46.6% year-over-year, with the Net Interest Margin (NIM) expanding by 65 basis points to reach 1.80%.

Here's a look at the key components driving the core interest income performance through the first nine months of 2025:

Interest income is generated directly from the asset base, notably the loan portfolio. As of September 30, 2025, the reported net loan portfolio stood at $669.2 million. This portfolio size is down from $701.5 million at March 31, 2025. For the three months ended June 30, 2025, total interest income was reported at $10.5 million. For the first quarter of 2025, interest income rose by $862,000, or 8.6%, reaching $10.9 million, driven by higher yields on interest-earning assets.

Non-interest income from service charges and fees, alongside other non-interest sources, contributes to the top line. For the nine months ended September 30, 2025, total non-interest income increased to $1.5 million, which was a rise of $612,000, or 65.9%, compared to the same period in 2024.

The non-interest income stream was significantly boosted by a specific, non-recurring event. You should note the impact of this item on period-over-period comparisons:

• Non-recurring income included a one-time Bank-Owned Life Insurance (BOLI) death benefit of approximately $543,000 for the nine months ended September 30, 2025.
• This same $543,000 BOLI death benefit accrual was recorded in the first quarter of 2025.
• Gains on the sale of loans also contributed to non-interest income, increasing by $26,000 for the nine months ended September 30, 2025, when compared to the prior year.

The presence of this one-time $543,000 BOLI death benefit in the first half of 2025 must be factored out when assessing the sustainability of the reported net income improvement.