Bogota Financial Reports Profitability in Q2

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News Summary

Bogota Financial has reported a net income of $224,000 in the second quarter, marking a significant recovery from a prior loss. The bank also recorded a 34.7% increase in net interest income, although total assets declined. Delinquent loans rose, but the efficiency ratio improved, showcasing cost-control efforts. The bank plans to focus on expanding its commercial loan and deposit portfolios despite not declaring dividends for the upcoming quarters.

Bogota Financial Returns to Profitability in Q2 2025 Amid Rising Delinquencies

Bogota Financial (NASDAQ: BSBK) has reported a successful return to profitability for the second quarter of 2025, achieving earnings of $0.02 per share as it moves past challenging economic conditions. This progress is significant, especially when compared to a net loss of $432,000 during the same period last year. For the first half of 2025, the bank’s performance showed a net income of $955,000, marking a dramatic turnaround from a net loss of $873,000 in 2024.

Increase in Net Interest Income

The bank’s improved profitability can largely be attributed to a 34.7% increase in net interest income, which rose to $3.7 million in Q2 2025 from $2.7 million in Q2 2024. This increase has been further reinforced by a higher net interest margin of 1.74%, a rise from 1.21% last year. Additionally, effective management of funding expenses has contributed positively to these financial results.

Assets and Loan Balances

Despite the bank’s return to profitability, total assets saw a 5.1% decline and stood at $921.8 million by the end of the second quarter. This drop reflects a 2.6% decrease in loan balances, with repayments outpacing new originations, particularly in the residential and construction loan categories. As a result, delinquencies increased, rising to $20.4 million which constitutes 2.94% of total loans. Most of this delinquency is attributed to a single $7.1 million commercial real estate loan.

Deposits and Non-Performing Assets

Total deposits also saw a decrease of 2.2%, falling to $628.2 million, with declines across almost all categories. However, savings accounts experienced a slight increase, growing by $4.6 million. Stability was noted in non-performing assets, remaining consistent at 1.50% of total assets.

Efficiency Ratio and Cost Management

The efficiency ratio, a measure of a bank’s operating expenses, improved significantly to 95.7%, down from 122.3% in Q2 2024, highlighting effective cost control measures by the bank. Additionally, there was a one-time boost to non-interest income from a payout of $543,000 from a bank-owned life insurance policy, and overall non-interest income increased by 9.4% year-over-year.

Capital and Liabilities Overview

Bogota Financial’s total liabilities decreased to $783.4 million, a decline of 6.1%. The financial institution maintains a strong capital position, with a Tier 1 capital to average assets ratio of 15.32%, exceeding required levels. The average equity as a percentage of total assets also saw a positive trend, reaching 14.96% as of June 30, 2025.

Future Outlook

While the company did not declare any dividends for the quarter, management anticipates an increase in loan demand later in 2025 and into early 2026. They aim to grow both commercial loan and deposit portfolios while managing associated risks amid changing market conditions.

In summary, Bogota Financial’s return to profitability illustrates a strong rebound from previous losses, driven by increased net interest income and improved efficiency. However, the rising levels of delinquencies and reduced loan and deposit balances indicate areas that require careful attention moving forward.

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Construction CA News
Author: Construction CA News

CALIFORNIA STAFF WRITER The CALIFORNIA STAFF WRITER represents the experienced team at constructioncanews.com, your go-to source for actionable local news and information in California and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Rose Parade, Coachella, Comic-Con, and the California State Fair. Our coverage extends to key organizations like the California Building Industry Association and Associated General Contractors of California, plus leading businesses in technology and entertainment that power the local economy such as Apple and Alphabet. As part of the broader network, including constructionnynews.com, constructiontxnews.com, and constructionflnews.com, we provide comprehensive, credible insights into the dynamic landscape across multiple states.

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