EX-99.1 2 d881617dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

Bogota Financial Corp. Reports Results

for the Fourth Quarter and Twelve

Months Ended December 31, 2019

 

 

NEWS PROVIDED BY

Bogota Financial Corp.

 

Teaneck, New Jersey, February 3, 2020 – Bogota Financial Corp. (the “Company”) (NASDAQ: BSBK), the holding company for Bogota Savings Bank (the “Bank”), reported net income for the three and twelve months ended December 31, 2019. Net income for the three months ended December 31, 2019 was $787,000, $62,000 or 7.3%, less than the comparable prior year period. Net Income for the twelve months end December 31, 2019 was $2.4 million, $1.7 million, or 41.3%, less than the previous year.

On January 15, 2020, the Company became the holding company for the Bank when it closed its stock offering in connection with the completion of the reorganization of the Bank into a two-tier mutual holding company form of organization. The Company sold 5,657,735 shares of common stock at a price of $10 per share, for gross proceeds of $56.6 million, and issued 7,236,640 shares to Bogota Financial, MHC, its mutual holding company parent.

Other Financial Highlights:

 

   

Total assets grew $101.6 million, or 15.3%, to $766.6 million from December 31, 2018.

 

   

Net loans increased $10.5 million, or 2.0%, to $537.2 million from year-end 2018.

 

   

Total deposit balances were $497.7 million at December 31, 2019, decreasing $12.5 million, or 2.5%, during the twelve months then ended.

 

   

Return on average assets was 0.43% for the three-month period compared to 0.63% for the corresponding period of 2018. Return on average assets were 0.36% for the twelve-month period compared to 0.63% for the comparable prior year.

 

   

Return on average equity was 4.25% for the fourth quarter compared to 5.72% for the same period of 2018. Return on average equity was 3.30% for the twelve month period compared to 5.89% for 2018.

Joseph Coccaro, President and Chief Executive Officer, said “We are pleased with the successful strategy undertaken to expand our loan portfolio and the positive overall impacts on assets and income. Efforts to expand our market presence, improve and expand our technology platform and offerings, manage our interest rate risk, improve loan quality, and control our loan delinquencies continued during the quarter.”


Income Statement Analysis

Compared to the fourth quarter of 2018, net interest income decreased $207,000, or 6.8%, to $2.8 million. Our net interest margin decreased from 1.90% to 1.60%, while the ratio of average interest-earning assets to average interest-bearing liabilities improved 8.1% to 120.0%. For the year ended December 31, 2019, net interest income decreased $2.1 million, or 15.6%, to $11.2 million. Overall there was a 39 basis point decline in net interest margin to 1.73%, while the ratio of average interest-earning assets to average interest-bearing liabilities improved 1.5% to 112.3%. The decline in net interest margin during 2019 was mostly due to the higher cost of funds and an inverted yield curve.

We recorded no provision for loan losses for the three and twelve months ended December 31, 2019 as credit quality for the Bank remained very strong.

Non-interest income was $131,000 for the three months ended December 31, 2019, a decrease of $11,000, or 7.5%, compared to $142,000 in the prior year. For the twelve months ended December 31, 2019, non-interest income totaled $543,000, a decrease of $71,000, or 11.5%, from the prior year. Lower earnings on Bank Owned Life Insurance was the primary reason for the decline during both periods.

For the fourth quarter, non-interest expenses decreased $233,000 to $1.9 million, over the comparable 2018 period. Salaries and employee benefits increased $91,000 or 8.6%, attributable to annual salary merit increases, production incentives, employee benefit increases and additions to staff. The reduction of other general operating expenses was mainly due to increases in data processing costs associated with a data center conversion during the 2018 period that were nonrecurring during the 2019 period.

For the twelve months ended December 31, 2019, non-interest expenses increased $118,000, or 1.4%, to $8.4 million, as compared to last year. During that period salaries and employee benefits increased $388,000, or 8.7%. Both comparative periods were positively impacted by a reduction in our FDIC assessment and lower data processing costs.

Balance Sheet Analysis

Total assets were $766.6 million at December 31, 2019, representing an increase of $101.6 million, or 15.3%, from December 31, 2018. Net loans increased $10.5 million or 2.0%, due to new productions of $87.3 million of primarily real estate loans, which were partially offset by $76.8 million in repayments. Securities held to maturity decreased $14.0 million mostly due to maturities in municipal bonds and government agency bonds that were not replaced. Cash and due from banks increased $103.3 million during the period primarily as a result of $90.4 million in offering subscriptions.

Delinquent loans decreased $508,000, or 47.2%, between year-end and December 31, 2019, finishing at 0.1% of total loans, or $569,000. During the same timeframe, non-performing assets decreased $391,000, or 39.9%, to $590,000. Our reserve as a percentage of total gross loans was 0.4% at December 31, 2019.

Total liabilities increased $99.1 million, or 16.7%, to $691.6 million mainly due to $90.4 million in gross subscriptions and an increase of $22.5 million in Federal Home Loan Bank advances, partially offset by a $12.5 million, or 2.5%, decrease in deposits.


Stockholders’ equity increased $2.5 million to $75.0 million, primarily due to net income of the Bank. At December 31, 2019, the Company’s ratio of stockholders’ equity-to-total assets was 10.96%, compared to 11.08% at December 31, 2018.

EXPLANATORY NOTE

The Company was formed to serve as the mid-tier stock holding company for the Bank in connection with the reorganization of the Bank and its mutual holding company, Bogota Financial, MHC, into the two-tier mutual holding company structure. As of December 31, 2019, the reorganization had not been completed and the Company had no assets or liabilities and had not conducted any business activities other than organizational activities. Accordingly, the unaudited financial statements and other financial information contained relate solely to the consolidated financial results of the Bank.

About Bogota Financial Corp.

Bogota Financial Corp. is a Maryland corporation organized as the mid-tier holding company of Bogota Savings Bank and is the majority-owned subsidiary of Bogota Financial, MHC. Bogota Savings Bank is a New Jersey chartered stock savings bank that has served the banking needs of its customers in northern and central New Jersey since 1893. It operates from two offices located in Bogota and Teaneck, New Jersey.

Forward-Looking Statements

This press release contains certain forward-looking statements about the Company and the Bank. Forward-looking statements include statements regarding anticipated future events and can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as “believe,” “expect,” “anticipate,” “estimate,” and “intend” or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” Forward-looking statements, by their nature, are subject to risks and uncertainties. Certain factors that could cause actual results to differ materially from expected results include increased competitive pressures, changes in the interest rate environment, general economic conditions or conditions within the securities markets, and legislative and regulatory changes that could adversely affect the business in which the Company and the Bank are engaged. The Company undertakes no obligation to revise these forward-looking statements or to reflect events or circumstances after the date of this press release.


BOGOTA FINANCIAL CORP.

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

 

     December 31,
2019
    December 31,
2018
 
     (unaudited)     (audited)  
Assets             

Cash and due from banks

   $ 5,176,241     $ 5,744,106  

Interest-bearing deposits in other banks

     122,686,318       18,773,496  
  

 

 

   

 

 

 

Cash and cash equivalents

     127,862,559       24,517,602  

Securities available for sale

     13,748,561       13,599,806  

Securities held to maturity (fair value of $56,582,300 and $68,802,922, respectively)

     56,093,317       70,048,579  

Loans, net of allowance of $2,016,175 and $1,976,175, respectively

     537,157,217       526,669,660  

Premises and equipment, net

     4,196,753       4,656,903  

Federal Home Loan Bank (FHLB) stock

     5,672,700       4,684,300  

Accrued interest receivable

     2,021,360       1,946,768  

Bank owned life insurance

     17,409,745       17,004,105  

Other assets

     2,450,042       1,880,815  
  

 

 

   

 

 

 

Total Assets

   $ 766,612,254     $ 665,008,538  
  

 

 

   

 

 

 
Liabilities and Equity             

Liabilities

    

Non-interest bearing

   $ 16,122,231     $ 12,500,091  

Interest bearing

     481,627,221       497,793,237  
  

 

 

   

 

 

 

Total Deposits

     497,749,452       510,293,328  

FHLB advances

     97,092,484       74,638,690  

Advance payments by borrowers for taxes and insurance

     3,191,706       4,332,611  

Subscription offering proceeds

     90,349,840        

Other liabilities

     3,250,925       3,266,141  
  

 

 

   

 

 

 

Total liabilities

     691,634,407       592,530,770  
  

 

 

   

 

 

 

Equity

    

Retained earnings

     75,291,512       72,794,887  

Accumulated other comprehensive loss

     (313,665     (317,119
  

 

 

   

 

 

 

Total equity

     74,977,847       72,477,768  
  

 

 

   

 

 

 

Total liabilities and equity

   $ 766,612,254     $ 665,008,538  
  

 

 

   

 

 

 


BOGOTA FINANCIAL CORP.

CONSOLIDATED STATEMENTS OF INCOME

 

     Three Months Ended
December 31,
     Twelve Months Ended
December 31,
 
     2019     2018      2019      2018  
     (unaudited)      (audited)  

Interest income

          

Loans

   $ 5,082,818     $ 4,824,863      $ 20,229,978      $ 19,188,860  

Securities

          

Taxable

     446,941       486,164        1,830,199        1,863,592  

Tax-exempt

     11,667       40,448        89,453        120,234  

Other interest-earning assets

     332,643       198,383        992,486        813,617  
  

 

 

   

 

 

    

 

 

    

 

 

 

Total interest income

     5,874,069       5,549,858        23,142,116        21,986,303  
  

 

 

   

 

 

    

 

 

    

 

 

 

Interest expense

          

Deposits

     2,477,058       2,098,299        9,910,147        7,450,527  

FHLB advances

     575,099       422,555        2,062,578        1,306,880  
  

 

 

   

 

 

    

 

 

    

 

 

 

Total interest expense

     3,052,157       2,520,854        11,972,725        8,757,407  
  

 

 

   

 

 

    

 

 

    

 

 

 

Net interest income

     2,821,912       3,029,004        11,169,391        13,228,896  

Provision for loan losses

                          
  

 

 

   

 

 

    

 

 

    

 

 

 

Net interest income after provision for loan losses

     2,821,912       3,029,004        11,169,391        13,228,896  
  

 

 

   

 

 

    

 

 

    

 

 

 

Non-interest income

          

Fees and service charges

     25,492       22,930        111,379        120,652  

Bank owned life insurance

     100,498       111,993        405,639        456,432  

Other

     5,401       7,090        26,262        37,100  
  

 

 

   

 

 

    

 

 

    

 

 

 

Total non-interest income

     131,391       142,013        543,280        614,184  
  

 

 

   

 

 

    

 

 

    

 

 

 

Non-interest expense

          

Salaries and employee benefits

     1,160,888       1,069,399        4,865,342        4,476,976  

Occupancy and equipment

     166,904       164,294        680,421        690,365  

FDIC insurance assessment

     (30,839     46,879        44,457        193,452  

Data processing

     98,200       376,795        919,158        1,034,839  

Advertising

     77,136       80,000        262,136        260,000  

Director fees

     162,868       165,289        661,464        671,732  

Professional fees

     79,514       49,278        285,614        225,278  

Other

     159,578       154,823        715,555        763,170  
  

 

 

   

 

 

    

 

 

    

 

 

 

Total non-interest expense

     1,874,249       2,106,757        8,434,147        8,315,812  
  

 

 

   

 

 

    

 

 

    

 

 

 

Income before income taxes

     1,079,054       1,064,260        3,278,524        5,527,268  

Income tax expense

     292,245       215,585        850,612        1,390,591  
  

 

 

   

 

 

    

 

 

    

 

 

 

Net income

   $ 786,809     $ 848,675      $ 2,427,912      $ 4,136,677  
  

 

 

   

 

 

    

 

 

    

 

 

 


BOGOTA FINANCIAL CORP.

SELECTED RATIOS

 

 
     At or For the Three Months
Ended December 31,
    At or For the Twelve Months
Ended December 31,
 
     2019     2018     2019     2018  
     (unaudited)     (audited)  

Performance Ratios (1):

        

Return on average assets (2)

     0.43%       0.63%       0.36%       0.63%  

Return on average equity (3)

     4.25%       5.72%       3.30%       5.85%  

Interest rate spread (4)

     1.27%       1.75%       1.51%       1.97%  

Net interest margin (5)

     1.60%       1.90%       1.73%       2.12%  

Efficiency ratio (6)

     69.66%       66.50%       72.01%       60.07%  

Average interest-earning assets to average interest-bearing liabilities

     119.97%       111.00%       112.28%       110.68%  

Net loans to deposits

     107.92%       103.60%       107.92%       103.60%  

Equity to assets (7)

     10.12%       10.96%       10.96%       11.08%  

Capital Ratios:

        

Tier 1 capital (to adjusted total assets)

         10.78%       11.19%  

Tier 1 capital (to risk-weighted assets)

         17.29%       17.85%  

Total capital (to risk-weighted assets)

         17.76%       18.34%  

Common equity Tier 1 capital (to risk-weighted assets)

         17.29%       17.85%  

Asset Quality Ratios:

        

Allowance for loan losses as a percent of total loans

         0.37%       0.37%  

Allowance for loan losses as a percent of non-performing loans

         341.76%       201.37%  

Net recoveries to average outstanding loans during the period

         0.00%       0.00%  

Non-performing loans as a percent of total loans

         0.11%       0.19%  

Non-performing assets as a percent of total assets

         0.08%       0.15%  

 

(1)

Performance ratios are annualized.

(2)

Represents net income divided by average total assets.

(3)

Represents net income divided by average equity.

(4)

Represents the difference between the weighted average yield on average interest-earning assets and the weighted average cost of average interest-bearing liabilities. Tax exempt income is reported on a tax equivalent basis using a combined federal and state marginal tax rate of 30%.

(5)

Represents net interest income as a percent of average interest-earning assets. Tax exempt income is reported on a tax equivalent basis using a combined federal and state marginal tax rate of 30% for 2018 and 2019.

(6)

Represents non-interest expenses divided by the sum of net interest income and non-interest income.

(7)

Represents average equity divided by average total assets.