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Bogota Financial Corp. Reports Results for the Three Months Ended March 31, 2024

Bogota Financial Corp. (NASDAQ: BSBK) (the “Company”), the holding company for Bogota Savings Bank (the “Bank”), reported net loss for the three months ended March 31, 2024 of $441,000, or $0.03 per basic and diluted share, compared to net income of $993,000, or $0.08 per basic and diluted share, for the comparable prior year period.

Other Financial Highlights:

  • Total assets increased $21.9 million, or 2.3%, to $961.2 million at March 31, 2024 from $939.3 million at December 31, 2023, due to an increase in securities, offset by a decrease in cash and cash equivalents and loans.
  • Cash and cash equivalents decreased $10.5 million, or 42.1%, to $14.4 million at March 31, 2024 from $24.9 million at December 31, 2023 as excess funds were used to purchase securities.
  • Securities increased $37.0 million, or 26.1%, to $178.5 million at March 31, 2024 from $141.5 million at December 31, 2023.
  • Net loans decreased $5.9 million, or 0.8%, to $708.8 million at March 31, 2024 from $714.7 million at December 31, 2023.
  • Total deposits at March 31, 2024 were $665.5 million, increasing $40.2 million, or 6.4%, as compared to $625.3 million at December 31, 2023, primarily due to a $41.0 million increase in interest-bearing deposits primarily in certificates of deposit, offset by a $780,000 decrease in non-interest bearing demand accounts. The average rate on deposits increased 32 basis points to 3.74% for the first quarter of 2024 from 3.42% for 2023 due to higher interest rates and a larger percentage of deposits consisting of higher-costing certificates of deposit.
  • Federal Home Loan Bank advances decreased $18.4 million, or 11.0% to $149.3 million at March 31, 2024 from $167.7 million as of December 31, 2023.

Kevin Pace, President and Chief Executive Officer, said “Interest rates remaining elevated will continue to negatively impact funding costs and our net interest margin. We are actively employing strategies to combat the 'higher for longer' interest rate expectations of the Federal Reserve. Our credit quality remains strong and we will continue to be prudent lenders in this environment. We continue to remain positive in our ability to navigate the current landscape. Growth remains a key focus in our strategic plan as we remain committed to delivering value to our shareholders and customers.”

“The Bank opened its newest branch location in Upper Saddle River, New Jersey, on April 13th. We are excited for the opportunity this expansion will bring to our growth strategy. This physical location allows us to enhance our presence in the northern Bergen County market and become more active in those communities."

Income Statement Analysis

Comparison of Operating Results for the Three Months Ended March 31, 2024 and March 31, 2023

Net income decreased by $1.4 million, or 144.4%, to a net loss of $441,000 for the three months ended March 31, 2024 from net income of $993,000 for the three months ended March 31, 2023. This decrease was primarily due to a decrease of $1.9 million in net interest income, partially offset by a decrease of $585,000 in income tax expense.

Interest income increased $1.0 million, or 11.6%, from $9.0 million for the three months ended March 31, 2023 to $10.1 million for the three months ended March 31, 2024 due to higher yields on interest-earning assets, offset by a decrease in the average balance of loans.

Interest income on cash and cash equivalents increased $45,000, or 42.9%, to $150,000 for the three months ended March 31, 2024 from $105,000 for the three months ended March 31, 2023 due a 126 basis point increase in the average yield from 4.84% for the three months ended March 31, 2023 to 6.10% for the three months ended March 31, 2024 due to the higher interest rate environment. The increase was also due to a $1.1 million increase in the average balance to $9.9 million for the three months ended March 31, 2024 from $8.8 million for the three months ended March 31, 2023, reflecting the increase of liquidity due to increased deposits and lower loan originations.

Interest income on loans increased $508,000, or 6.6%, to $8.2 million for the three months ended March 31, 2024 compared to $7.7 million for the three months ended March 31, 2023 due primarily to 29 basis point increase in the average yield from 4.32% for the three months ended March 31, 2023 to 4.61% for the three months ended March 31, 2024, offset by a $4.5 million decrease in the average balance to $713.4 million for the three months ended March 31, 2024 from $718.0 million for the three months ended March 31, 2023.

Interest income on securities increased $433,000, or 39.5%, to $1.5 million for the three months ended March 31, 2024 from $1.1 million for the three months ended March 31, 2023 primarily due to a 96 basis point increase in the average yield from 2.71% for the three months ended March 31, 2023 to 3.67% for the three months ended March 31, 2024, and, to a lesser extent, to a $4.7 million increase in the average balance to $166.7 million for the three months ended March 31, 2024 from $162.0 million for the three months ended March 31, 2023.

Interest expense increased $2.9 million, or 64.9%, from $4.5 million for the three months ended March 31, 2023 to $7.4 million for the three months ended March 31, 2024 due to higher costs and average balances on interest-bearing liabilities.

Interest expense on interest-bearing deposits increased $2.3 million, or 60.7%, to $6.0 million for the three months ended March 31, 2024 from $3.7 million for the three months ended March 31, 2023. The increase was due to a 157 basis point increase in the average cost of deposits to 3.82% for the three months ended March 31, 2024 from 2.25% for the three months ended March 31, 2023. The increase in the average cost of deposits was due to the higher interest rate environment and a change in the composition of the deposit portfolio. The average balances of certificates of deposit increased $13.1 million to $516.5 million for the three months ended March 31, 2024 from $503.4 million for the three months ended March 31, 2023 while average NOW and money market accounts and savings accounts decreased $43.3 million and $10.3 million for the three months ended March 31, 2024, respectively, compared to the three months ended March 31, 2023.

Interest expense on Federal Home Loan Bank borrowings increased $663,000, or 85.3%, from $777,000 for the three months ended March 31, 2023 to $1.4 million for the three months ended March 31, 2024. The increase was primarily due to an increase in the average balance of borrowings of $56.7 million to $153.3 million for the three months ended March 31, 2024 from $96.5 million for the three months ended March 31, 2023. The increase was also due to an increase in the average cost of borrowings of 51 basis points to 3.78% for the three months ended March 31, 2024 from 3.27% for the three months ended March 31, 2023 due to the new borrowings being at higher rates. Cash flow hedges used to manage interest rate risk totaled $105.0 million at March 31, 2024. During the three months ended March 31, 2024, the use of the cash flow hedges reduced the interest expense on the Federal Home Loan Bank advances and certificates of deposit by $288,000.

Net interest income decreased $1.9 million, or 41.4%, to $2.7 million for the three months ended March 31, 2024 from $4.5 million for the three months ended March 31, 2023. The decrease reflected a 100 basis point decrease in our net interest rate spread to 0.68% for the three months ended March 31, 2024 from 1.68% for the three months ended March 31, 2023. Our net interest margin decreased 87 basis points to 1.18% for the three months ended March 31, 2024 from 2.05% for the three months ended March 31, 2023.

We recorded a $35,000 provision for credit losses for the three months ended March 31, 2024 compared to no provision for credit losses for the three-month period ended March 31, 2023. The provision in the first quarter of 2024 was due to an increase in corporate securities.

Non-interest income increased by $16,000, or 5.6%, to $299,000 for the three months ended March 31, 2024 from $283,000 for the three months ended March 31, 2023. Bank-owned life insurance income increased $26,000, or 14.0%, due to higher balances during 2024, which was partially offset by a lower gain on sale of loans.

For the three months ended March 31, 2024, non-interest expense increased $126,000, or 3.6%, over the comparable 2023 period. Professional fees increased $48,000, or 31.8% due to higher consulting expense related to strategic business planning. FDIC insurance premiums increased $41,000, or 67.7%, due to a higher assessment rate in 2024. Data processing expense increased $27,000, or 9.6%, due to higher processing costs. The decrease in advertising expense of $37,000, or 25.3%, was due to reduced promotions for branch locations and less promotions on deposit and loan products. Other expense increased $67,000, or 37.6%, due to higher loan expense.

Income tax expense decreased $585,000, or 196.2%, to a benefit of $287,000 for the three months ended March 31, 2024 from a $298,000 expense for the three months ended March 31, 2023. The decrease was due to $2.0 million of lower taxable income.

Balance Sheet Analysis

Total assets were $961.2 million at March 31, 2024, representing an increase of $21.9 million, or 2.3%, from December 31, 2023. Cash and cash equivalents decreased $10.5 million during the period primarily due to the purchase of new securities offset by loan repayments. Net loans decreased $5.9 million, or 0.82%, due to $11.8 million in repayments, partially offset by new production of $5.9 million, including $6.1 million of commercial real estate loans. Due to the interest rate environment, we have seen a decrease in demand for residential and construction loans, which have been primary drivers of our loan growth in recent periods. Securities held to maturity increased $3.8 million, or 5.3%, and securities available for sale increased $33.2 million or 48.1%, due to new purchases of mortgage-backed securities.

Delinquent loans increased $840,000 to $13.4 million, or 1.89% of total loans, at March 31, 2024. The increase was mostly due to one commercial real estate loan with a balance of $766,000. During the same timeframe, non-performing assets decreased slightly to $12.4 million and were 1.30% of total assets at March 31, 2024. No loans were charged-off during the three months ended March 31, 2024 or March 31, 2023. The Company’s allowance for credit losses was 0.40% of total loans and 22.69% of non-performing loans at March 31, 2024 compared to 0.39% of total loans and 21.81% of non-performing loans at December 31, 2023. The Bank does not have any exposure to commercial real estate loans secured by office space.

Total liabilities increased $22.3 million, or 2.8%, to $824.4 million mainly due to a $41.0 million increase in interest bearing deposits, offset by an $18.4 million decrease in borrowings. Total deposits increased $40.2 million, or 6.4%, to $665.5 million at March 31, 2024 from $625.3 million at December 31, 2023. The increase in deposits reflected an increase in certificate of deposit accounts, which increased by $24.8 million to $518.1 million from $493.3 million at December 31, 2023 and by an increase in NOW deposit accounts, which increased by $16.5 million to $57.8 million from $41.3 million at December 31, 2023, offset by decreases in noninterest bearing demand and money market accounts, which decreased by $1.3 million from $45.2 million at December 31, 2023 to $43.9 million at March 31, 2024. At March 31, 2024, brokered deposits were $90.3 million or 13.6% of deposits and municipal deposits were $59.4 million or 8.9% of deposits. At March 31, 2024, uninsured deposits represented 8.4% of the Bank’s total deposits. Federal Home Loan Bank advances decreased $18.4 million, or 11.0%, due to repayment of matured borrowings. Total borrowing capacity at the Federal Home Loan Bank is $316.5 million of which $149.3 million has been advanced.

Total stockholders’ equity decreased $346,000 to $136.8 million, due to a net loss of $441,000, the repurchase of 33,083 shares of stock at a cost of $270,000, offset by a decrease in accumulated other comprehensive loss for securities available for sale of $80,000 and stock compensation of $234,000 for the three months ended March 31, 2024. At March 31, 2024, the Company’s ratio of average stockholders’ equity-to-total assets was 14.36%, compared to 15.24% at December 31, 2023.

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 seven offices located in Bogota, Hasbrouck Heights, Upper Saddle River, Newark, Oak Ridge, Parsippany and Teaneck, New Jersey and operates a loan production office in Spring Lake, 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, inflation, general economic conditions or conditions within the securities markets, potential recessionary conditions, real estate market values in the Bank’s lending area, changes in liquidity, including the size and composition of our deposit portfolio, including the percentage of uninsured deposits in the portfolio; the availability of low-cost funding; our continued reliance on brokered and municipal deposits; demand for loans in our market area; changes in the quality of our loan and security portfolios, increases in non-performing and classified loans, monetary and fiscal policies of the U.S. Government including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System, a failure in or breach of the Company’s operational or security systems or infrastructure, including cyberattacks, the failure to maintain current technologies, failure to retain or attract employees and legislative, accounting 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

(unaudited)

 

 

 

As of

 

 

As of

 

 

 

March 31, 2024

 

 

December 31, 2023

 

Assets

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

6,507,713

 

 

$

13,567,115

 

Interest-bearing deposits in other banks

 

 

7,927,173

 

 

 

11,362,356

 

Cash and cash equivalents

 

 

14,434,886

 

 

 

24,929,471

 

Securities available for sale, at fair value

 

 

102,046,637

 

 

 

68,888,179

 

Securities held to maturity, at amortized cost (fair value of $68,870,062 and $65,374,753, respectively)

 

 

76,497,289

 

 

 

72,656,179

 

Loans, net of allowance of $2,820,950 and $2,785,949, respectively

 

 

708,824,281

 

 

 

714,688,635

 

Premises and equipment, net

 

 

7,827,305

 

 

 

7,687,387

 

Federal Home Loan Bank (FHLB) stock and other restricted securities

 

 

7,788,500

 

 

 

8,616,100

 

Accrued interest receivable

 

 

4,036,718

 

 

 

3,932,785

 

Core deposit intangibles

 

 

192,066

 

 

 

206,116

 

Bank-owned life insurance

 

 

31,199,810

 

 

 

30,987,851

 

Other assets

 

 

8,395,905

 

 

 

6,731,500

 

Total Assets

 

$

961,243,397

 

 

$

939,324,203

 

Liabilities and Equity

 

 

 

 

 

 

 

 

Non-interest bearing deposits

 

$

29,775,170

 

 

$

30,554,842

 

Interest bearing deposits

 

 

635,767,236

 

 

 

594,792,300

 

Total deposits

 

 

665,542,406

 

 

 

625,347,142

 

FHLB advances-short term

 

 

28,500,000

 

 

 

37,500,000

 

FHLB advances-long term

 

 

120,823,755

 

 

 

130,189,663

 

Advance payments by borrowers for taxes and insurance

 

 

2,998,852

 

 

 

2,733,709

 

Other liabilities

 

 

6,551,192

 

 

 

6,380,486

 

Total liabilities

 

 

824,416,205

 

 

 

802,151,000

 

 

 

 

 

 

 

 

 

 

Stockholders’ Equity

 

 

 

 

 

 

 

 

Preferred stock $0.01 par value 1,000,000 shares authorized, none issued and outstanding at March 31, 2024 and December 31, 2023

 

 

 

 

 

 

Common stock $0.01 par value, 30,000,000 shares authorized, 13,256,147 issued and outstanding at March 31, 2024 and 13,279,230 at December 31, 2023

 

 

132,461

 

 

 

132,792

 

Additional paid-in capital

 

 

56,090,019

 

 

 

56,149,915

 

Retained earnings

 

 

91,736,088

 

 

 

92,177,068

 

Unearned ESOP shares (403,082 shares at March 31, 2024 and 409,750 shares at December 31, 2023)

 

 

(4,746,497

)

 

 

(4,821,798

)

Accumulated other comprehensive loss

 

 

(6,384,879

)

 

 

(6,464,774

)

Total stockholders’ equity

 

 

136,827,192

 

 

 

137,173,203

 

Total liabilities and stockholders’ equity

 

$

961,243,397

 

 

$

939,324,203

 

BOGOTA FINANCIAL CORP.

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2024

 

 

2023

 

Interest income

 

 

 

 

 

 

 

 

Loans

 

$

8,207,392

 

 

$

7,699,438

 

Securities

 

 

 

 

 

 

 

 

Taxable

 

 

1,516,343

 

 

 

1,051,260

 

Tax-exempt

 

 

13,148

 

 

 

44,902

 

Other interest-earning assets

 

 

324,304

 

 

 

221,589

 

Total interest income

 

 

10,061,187

 

 

 

9,017,189

 

Interest expense

 

 

 

 

 

 

 

 

Deposits

 

 

5,969,881

 

 

 

3,714,997

 

FHLB advances

 

 

1,440,069

 

 

 

777,354

 

Total interest expense

 

 

7,409,950

 

 

 

4,492,351

 

Net interest income

 

 

2,651,237

 

 

 

4,524,838

 

Provision (credit) for loan losses

 

 

35,000

 

 

 

 

Net interest income after provision (credit) for credit losses

 

 

2,616,237

 

 

 

4,524,838

 

Non-interest income

 

 

 

 

 

 

 

 

Fees and service charges

 

 

58,587

 

 

 

52,152

 

Gain on sale of loans

 

 

 

 

 

13,225

 

Bank-owned life insurance

 

 

211,959

 

 

 

186,053

 

Other

 

 

28,532

 

 

 

31,849

 

Total non-interest income

 

 

299,078

 

 

 

283,279

 

Non-interest expense

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

2,158,565

 

 

 

2,162,369

 

Occupancy and equipment

 

 

371,117

 

 

 

382,787

 

FDIC insurance assessment

 

 

100,597

 

 

 

60,000

 

Data processing

 

 

303,605

 

 

 

277,097

 

Advertising

 

 

110,100

 

 

 

147,300

 

Director fees

 

 

155,700

 

 

 

159,337

 

Professional fees

 

 

196,785

 

 

 

149,250

 

Other

 

 

246,622

 

 

 

179,208

 

Total non-interest expense

 

 

3,643,091

 

 

 

3,517,348

 

(Loss) income before income taxes

 

 

(727,776

)

 

 

1,290,769

 

Income tax (benefit) expense

 

 

(286,796

)

 

 

298,062

 

Net (loss) income

 

$

(440,980

)

 

$

992,707

 

(Loss) earnings per Share - basic

 

$

(0.03

)

 

$

0.08

 

(Loss) earnings per Share - diluted

 

$

(0.03

)

 

$

0.08

 

Weighted average shares outstanding - basic

 

 

12,852,930

 

 

 

13,013,492

 

Weighted average shares outstanding - diluted

 

 

12,852,930

 

 

 

13,055,533

 

BOGOTA FINANCIAL CORP.

SELECTED RATIOS

(unaudited)

 

 

 

At or For the Three Months

 

 

 

Ended March 31,

 

 

 

2024

 

 

2023

 

Performance Ratios (1):

 

 

 

 

 

 

 

 

(Loss) return on average assets (2)

 

 

(0.19

)%

 

 

0.39

%

(Loss) return on average equity (3)

 

 

(1.29

)%

 

 

2.68

%

Interest rate spread (4)

 

 

0.68

%

 

 

1.68

%

Net interest margin (5)

 

 

1.18

%

 

 

2.05

%

Efficiency ratio (6)

 

 

137.41

%

 

 

73.15

%

Average interest-earning assets to average interest-bearing liabilities

 

 

114.57

%

 

 

116.68

%

Net loans to deposits

 

 

106.50

%

 

 

103.07

%

Average equity to assets (7)

 

 

14.36

%

 

 

14.69

%

Capital Ratios:

 

 

 

 

 

 

 

 

Tier 1 capital to average assets

 

 

13.23

%

 

 

15.60

%

Asset Quality Ratios:

 

 

 

 

 

 

 

 

Allowance for credit losses as a percent of total loans

 

 

0.40

%

 

 

0.38

%

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

 

 

22.69

%

 

 

21.35

%

Net charge-offs to average outstanding loans during the period

 

 

--

%

 

 

--

%

Non-performing loans as a percent of total loans

 

 

1.75

%

 

 

1.79

%

Non-performing assets as a percent of total assets

 

 

1.30

%

 

 

1.35

%

(1)

Certain performance ratios for the three-months are annualized.

(2)

Represents net (loss) income divided by average total assets.

(3)

Represents net (loss) income divided by average stockholders’ 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 27.5% for 2024 and 2023.

(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 27.5% for 2024 and 2023.

(6)

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

(7)

Represents average stockholders’ equity divided by average total assets.

LOANS

Loans are summarized as follows at March 31, 2024 and December 31, 2023:

 

 

March 31,

 

 

December 31,

 

 

 

2024

 

 

2023

 

 

 

(unaudited)

 

Real estate:

 

 

 

 

 

 

 

 

Residential First Mortgage

 

$

482,448,777

 

 

$

486,052,422

 

Commercial Real Estate

 

 

105,959,762

 

 

 

99,830,514

 

Multi-Family Real Estate

 

 

75,747,749

 

 

 

75,612,566

 

Construction

 

 

41,160,057

 

 

 

49,302,040

 

Commercial and Industrial

 

 

6,284,264

 

 

 

6,658,370

 

Consumer

 

 

44,622

 

 

 

18,672

 

Total loans

 

 

711,645,231

 

 

 

717,474,584

 

Allowance for credit losses

 

 

(2,820,950

)

 

 

(2,785,949

)

Net loans

 

$

708,824,281

 

 

$

714,688,635

 

The following tables set forth the distribution of total deposit accounts, by account type, at the dates indicated (unaudited).

 

 

At March 31,

 

 

At December 31,

 

 

 

2024

 

 

2023

 

 

 

Amount

 

 

Percent

 

 

Average Rate

 

 

Amount

 

 

Percent

 

 

Average Rate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(unaudited)

 

Noninterest bearing demand accounts

 

$

29,787,560

 

 

 

4.48

%

 

 

%

 

$

30,555,546

 

 

 

4.89

%

 

 

%

NOW accounts

 

 

57,791,993

 

 

 

8.68

%

 

 

2.29

 

 

 

41,320,723

 

 

 

6.61

%

 

 

1.90

 

Money market accounts

 

 

14,134,638

 

 

 

2.12

%

 

 

0.29

 

 

 

14,641,000

 

 

 

2.34

%

 

 

0.30

 

Savings accounts

 

 

45,751,518

 

 

 

6.87

%

 

 

1.81

 

 

 

45,554,964

 

 

 

7.28

%

 

 

1.76

 

Certificates of deposit

 

 

518,076,697

 

 

 

77.84

%

 

 

4.38

 

 

 

493,274,767

 

 

 

78.88

%

 

 

4.00

 

Total

 

$

665,542,406

 

 

 

100.00

%

 

 

3.74

%

 

$

625,347,000

 

 

 

100.00

%

 

 

3.42

%

Average Balance Sheets and Related Yields and Rates

The following tables present information regarding average balances of assets and liabilities, the total dollar amounts of interest income and dividends from average interest-earning assets, the total dollar amounts of interest expense on average interest-bearing liabilities, and the resulting annualized average yields and costs. The yields and costs for the periods indicated are derived by dividing income or expense by the average balances of assets or liabilities, respectively, for the periods presented. Average balances have been calculated using daily balances. Nonaccrual loans are included in average balances only. Loan fees are included in interest income on loans and are not material.

 

 

Three Months Ended March 31,

 

 

 

2024

 

 

2023

 

 

 

Average

 

 

Interest and

 

 

Yield/

 

 

Average

 

 

Interest and

 

 

Yield/

 

 

 

Balance

 

 

Dividends

 

 

Cost (3)

 

 

Balance

 

 

Dividends

 

 

Cost (3)

 

 

 

(Dollars in thousands)

 

 

 

(unaudited)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

9,865

 

 

$

150

 

 

 

6.10

%

 

$

8,799

 

 

$

105

 

 

 

4.84

%

Loans

 

 

713,430

 

 

 

8,207

 

 

 

4.61

%

 

 

717,964

 

 

 

7,699

 

 

 

4.32

%

Securities

 

 

166,666

 

 

 

1,529

 

 

 

3.67

%

 

 

161,960

 

 

 

1,096

 

 

 

2.71

%

Other interest-earning assets

 

 

8,101

 

 

 

175

 

 

 

8.63

%

 

 

5,338

 

 

 

117

 

 

 

8.74

%

Total interest-earning assets

 

 

898,062

 

 

 

10,061

 

 

 

4.49

%

 

 

894,061

 

 

 

9,017

 

 

 

4.06

%

Non-interest-earning assets

 

 

55,694

 

 

 

 

 

 

 

 

 

 

 

54,810

 

 

 

 

 

 

 

 

 

Total assets

 

$

953,756

 

 

 

 

 

 

 

 

 

 

$

948,871

 

 

 

 

 

 

 

 

 

Liabilities and equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW and money market accounts

 

$

69,450

 

 

$

334

 

 

 

1.94

%

 

$

112,717

 

 

$

380

 

 

 

1.37

%

Savings accounts

 

 

43,348

 

 

 

198

 

 

 

1.84

%

 

 

53,618

 

 

 

70

 

 

 

0.53

%

Certificates of deposit

 

 

516,496

 

 

 

5,438

 

 

 

4.23

%

 

 

503,369

 

 

 

3,265

 

 

 

2.63

%

Total interest-bearing deposits

 

 

629,294

 

 

 

5,970

 

 

 

3.82

%

 

 

669,704

 

 

 

3,715

 

 

 

2.25

%

Federal Home Loan Bank advances (1)

 

 

153,269

 

 

 

1,440

 

 

 

3.78

%

 

 

96,532

 

 

 

777

 

 

 

3.27

%

Total interest-bearing liabilities

 

 

782,563

 

 

 

7,410

 

 

 

3.81

%

 

 

766,236

 

 

 

4,492

 

 

 

2.38

%

Non-interest-bearing deposits

 

 

30,018

 

 

 

 

 

 

 

 

 

 

 

37,224

 

 

 

 

 

 

 

 

 

Other non-interest-bearing liabilities

 

 

4,175

 

 

 

 

 

 

 

 

 

 

 

5,977

 

 

 

 

 

 

 

 

 

Total liabilities

 

 

816,756

 

 

 

 

 

 

 

 

 

 

 

809,437

 

 

 

 

 

 

 

 

 

Total equity

 

 

137,000

 

 

 

 

 

 

 

 

 

 

 

139,434

 

 

 

 

 

 

 

 

 

Total liabilities and equity

 

$

953,756

 

 

 

 

 

 

 

 

 

 

$

948,871

 

 

 

 

 

 

 

 

 

Net interest income

 

 

 

 

 

$

2,651

 

 

 

 

 

 

 

 

 

 

$

4,525

 

 

 

 

 

Interest rate spread (2)

 

 

 

 

 

 

 

 

 

 

0.68

%

 

 

 

 

 

 

 

 

 

 

1.68

%

Net interest margin (3)

 

 

 

 

 

 

 

 

 

 

1.18

%

 

 

 

 

 

 

 

 

 

 

2.05

%

Average interest-earning assets to average interest-bearing liabilities

 

 

114.76

%

 

 

 

 

 

 

 

 

 

 

116.68

%

 

 

 

 

 

 

 

 

1.

Cash flow hedges are used to manage interest rate risk. During the three months ended March 31, 2024 and 2023, the net effect on interest expense on the Federal Home Loan Bank advances and certificates of deposit was a reduced expense of $288,000 and $47,000, respectively.

2.

Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.

3.

Net interest margin represents net interest income divided by average total interest-earning assets.

 

 

Rate/Volume Analysis

The following table sets forth the effects of changing rates and volumes on net interest income. The rate column shows the effects attributable to changes in rate (changes in rate multiplied by prior volume). The volume column shows the effects attributable to changes in volume (changes in volume multiplied by prior rate). The net column represents the sum of the prior columns. Changes attributable to changes in both rate and volume that cannot be segregated have been allocated proportionally based on the changes due to rate and the changes due to volume.

 

 

Three Months Ended March 31,

 

 

 

2024 Compared to Three

 

 

 

Months Ended March 31, 2023

 

 

 

Increase (Decrease) Due to

 

 

 

Volume

 

 

Rate

 

 

Net

 

 

 

(In thousands)

 

 

 

(unaudited)

 

Interest income:

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

14

 

 

$

31

 

 

$

45

 

Loans receivable

 

 

(314

)

 

 

822

 

 

 

508

 

Securities

 

 

33

 

 

 

400

 

 

 

433

 

Other interest earning assets

 

 

68

 

 

 

(10

)

 

 

58

 

Total interest-earning assets

 

 

(199

)

 

 

1,243

 

 

 

1,044

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

NOW and money market accounts

 

 

(639

)

 

$

593

 

 

$

(46

)

Savings accounts

 

 

(92

)

 

 

220

 

 

 

128

 

Certificates of deposit

 

 

89

 

 

 

2,084

 

 

 

2,173

 

Federal Home Loan Bank advances

 

 

524

 

 

 

139

 

 

 

663

 

Total interest-bearing liabilities

 

 

(118

)

 

 

3,036

 

 

 

2,918

 

Net increase (decrease) in net interest income

 

$

(81

)

 

$

(1,793

)

 

$

(1,874

)

 

Contacts

Kevin Pace – President & CEO, 201-862-0660 ext. 1110

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