Bogota Financial Corp. Reports Results for the Three and Six Months Ended June 30, 2025

TEANECK, N.J., July 31, 2025 (GLOBE NEWSWIRE) -- Bogota Financial Corp. (NASDAQ:BSBK) (the "Company"), the holding company for Bogota Savings Bank (the "Bank"), reported net income for the three months ended June 30, 2025 of $224,000, or $0.02 per basic and diluted share, compared to a net loss of $432,000, or $0.03 per basic and diluted share, for the comparable prior year period. The Company reported net income for the six months ended June 30, 2025 of $955,000, or $0.08 per basic and diluted share, compared to a net loss of $873,000, or $0.07 per basic and diluted share, for the comparable prior year period. Income for the six months ended June 30, 2025 included a one-time death benefit from the Company's bank-owned life insurance policy related to a former employee of approximately $543,000.

Other Financial Highlights:

• Total assets decreased $49.7 million, or 5.1%, to $921.8 million at June 30, 2025 from $971.5 million at December 31, 2024, due largely to a decrease in cash and cash equivalents and loans.

• Cash and cash equivalents decreased $31.9 million, or 61.1%, to $20.3 million at June 30, 2025 from $52.2 million at December 31, 2024 due as excess funds were used to pay down borrowings.

• Securities increased $4.3 million, or 3.1%, to $144.6 million at June 30, 2025 from $140.3 million at December 31, 2024.

• Net loans decreased $18.5 million, or 2.6%, to $693.2 million at June 30, 2025 from $711.7 million at December 31, 2024, primarily due to decreases in residential mortgages and construction loans.

• Total deposits at June 30, 2025 were $628.2 million, decreasing $14.0 million, or 2.2%, compared to $642.2 million at December 31, 2024, due to a $11.5 million decrease in certificates of deposit, a $2.8 million decrease in NOW accounts, a $2.3 million decrease in money market accounts and a $2.0 million decrease in noninterest bearing checking accounts. The decreases were offset by a $4.6 million increase in savings accounts. The average rate on deposits decreased 16 basis points to 3.75% for the first half of 2025 from 3.91% for the first half of 2024 due to lower interest rates and a lesser percentage of deposits consisting of higher-costing certificates of deposit.

• Federal Home Loan Bank advances decreased $36.2 million, or 21.0% to $135.9 million at June 30, 2025 from $172.2 million as of December 31, 2024. The decrease in borrowings was largely attributable to advances that matured during the six months ended June 30, 2025.

Kevin Pace, President and Chief Executive Officer, said, "The first half of 2025 has fallen in line with our projections. While loan demand has remained steady, we expect an uptick later this year and into early 2026. We remain dedicated to continued growth in our commercial portfolio while ensuring we limit risk to certain markets and property types. Growth in consumer and commercial deposits is another key initiative as we look to reduce cost of funds."

"We were able to complete our 5^th stock buyback recently. Since the IPO, we have reduced our outstanding shares by 1,653,571 and improved our tangible book value per minority share from $22.04 to $29.10. We continue to focus efforts on improving shareholder value."

Income Statement Analysis

Comparison of Operating Results for the Three Months Ended June 30, 2025 and June 30, 2024

Net income increased $657,000, or 151.9%, to $224,000 for the three months ended June 30, 2025 from a net loss of $432,000 for the three months ended June 30, 2024. This increase was primarily due to an increase of $951,000 in net interest income, partially offset by a decrease of $229,000 in income tax benefit.

Interest income increased $31,000, or 0.3%, to $10.5 million for the three months ended June 30, 2025 compared to the three months ended June 30, 2024.

Interest income on cash and cash equivalents decreased $21,000, or 16.4%, to $106,000 for the three months ended June 30, 2025 from $127,000 for the three months ended June 30, 2024 due to a 164 basis point decrease in the average yield from 5.90% for the three months ended June 30, 2024 to 4.26% for the three months ended June 30, 2025 due to the lower interest rate environment. This was offset by a $1.3 million increase in the average balance to $9.9 million for the three months ended June 30, 2025 from $8.6 million for the three months ended June 30, 2024, reflecting loan and securities repayments, which were offset by a reduction of borrowings.

Interest income on loans decreased $7,000, or 0.1%, as a seven basis point increase in the yield was offset by a $12.3 million decrease in the average balance of loans.

Interest income on securities increased $86,000, or 4.6%, due to a 151 basis point increase in the average yield offset by a $44.4 million decrease in the average balance. The changes in the yield and average balance reflect that, in the fourth quarter of 2024, the Company sold approximately $66.0 million in amortized cost ($57.1 million in market value) of securities with a weighted average yield of 1.89% and reinvested $32.7 million of these proceeds into securities with a weighted average yield of 5.60%.

Interest expense decreased $920,000, or 11.9%, from $7.7 million for the three months ended June 30, 2024 to $6.8 million for the three months ended June 30, 2025 due to lower average balances and costs on deposits and lower balances on borrowings. During the three months ended June 30, 2025, the use of hedges reduced the interest expense on the Federal Home Loan Bank advances and brokered deposits by $186,000. At June 30, 2025, cash flow hedges used to manage interest rate risk had a notional value of $65.0 million, while fair value hedges totaled $60.0 million in notional value. 

Interest expense on interest-bearing deposits decreased $730,000, or 11.7%, to $5.5 million for the three months ended June 30, 2025 from $6.3 million for the three months ended June 30, 2024. The decrease was due to a 32 basis point decrease in the average cost of deposits to 3.67% for the three months ended June 30, 2025 from 3.99% for the three months ended June 30, 2024. The decrease in the average cost of deposits was due to the lower interest rate environment and a change in the composition of the deposit portfolio. The average balances of certificates of deposit decreased $35.4 million to $482.5 million for the three months ended June 30, 2025 from $517.9 million for the three months ended June 30, 2024 while the average balance of NOW/money market accounts and savings accounts increased $5.6 million and $4.7 million for the three months ended June 30, 2025, respectively, compared to the three months ended June 30, 2024.

Interest expense on Federal Home Loan Bank advances decreased $190,000, or 12.9%, from $1.5 million for the three months ended June 30, 2024 to $1.3 million for the three months ended June 30, 2025. The decrease was primarily due to a decrease in the average balance of $40.0 million to $130.3 million for the three months ended June 30, 2025 from $170.3 million for the three months ended June 30, 2024. The decrease was offset by an increase in the average cost of borrowings of 47 basis points to 3.96% for the three months ended June 30, 2025 from 3.49% for the three months ended June 30, 2024 due to the new borrowings being shorter durations at higher rates.

Net interest income increased $951,000, or 34.7%, to $3.7 million for the three months ended June 30, 2025 from $2.7 million for the three months ended June 30, 2024. The increase reflected a 48 basis point increase in our net interest rate spread to 1.20% for the three months ended June 30, 2025 from 0.72% for the three months ended June 30, 2024. Our net interest margin increased 53 basis points to 1.74% for the three months ended June 30, 2025 from 1.21% for the three months ended June 30, 2024.

We did not record a provision for credit losses for the three months ended June 30, 2025 compared to a $35,000 provision for credit losses for the three-month period ended June 30, 2024.

Non-interest income increased $29,000, or 9.4%, to $332,000 for the three months ended June 30, 2025 from $303,000 for the three months ended June 30, 2024. Bank-owned life insurance income increased $13,000, or 6.0%, due to higher balances during 2025, which was augmented by an increase in the gain on sale of loans of $9,000 and an increase in fee and service charge income of $11,000. 

For the three months ended June 30, 2025, non-interest expense increased $129,000, or 3.5%, over the comparable 2024 period. Professional fees increased $112,000, or 43.2%, due to an increase in audit and consulting fees. Occupancy and equipment costs increased $274,000, or 74.6%, as a result of the lease-buyback transaction completed in the fourth quarter of 2024, which resulted in increased lease expense going forward. These were offset by a $83,000, or 3.9%, reduction in salaries and employee benefits, which decreased due to lower headcount, a $99,000, or 86.1%, decrease in advertising expenses and a $78,000, or 29.4%, decrease in other non-interest expense.

Income tax expense increased $229,000, or 151.9%, to a benefit of $53,000 for the three months ended June 30, 2025 from a $281,000 benefit for the three months ended June 30, 2024. The decrease was due to an increase of $886,000 in net income. 

Comparison of Operating Results for the Six Months Ended June 30, 2025 and June 30, 2024

Net income increased by $1.8 million, or 209.4%, to a net income of $955,000 for the six months ended June 30, 2025 from a net loss of $873,000 for the six months ended June 30, 2024. This increase was primarily due to an increase of $1.9 million in net interest income, partially offset by an increase of $488,000 in income tax expense. Income for the six months ended June 30, 2025 included a one-time death benefit of approximately $543,000 from the Company's bank-owned life insurance policy related to a former employee.

Interest income increased $893,000, or 4.4%, from $20.5 million for the six months ended June 30, 2024 to $21.4 million for the six months ended June 30, 2025 due to higher yields on interest-earning assets and a decrease in the average balance of interest-earning assets. 

Interest income on cash and cash equivalents increased $95,000, or 34.4%, to $371,000 for the six months ended June 30, 2025 from $276,000 for the six months ended June 30, 2024 due to a $4.8 million increase in the average balance to $13.3 million for the six months ended June 30, 2025 from $8.5 million for the six months ended June 30, 2024. This was partially offset by 92 basis point decrease in the average yield from 6.50% for the six months ended June 30, 2024 to 5.58% for the six months ended June 30, 2025.

Interest income on loans increased $387,000, or 2.3%, to $16.9 million for the six months ended June 30, 2025 compared to $16.5 million for the six months ended June 30, 2024 due primarily to a 18 basis point increase in the average yield from 4.64% for the six months ended June 30, 2024 to 4.82% for the six months ended June 30, 2025, offset by a $10.3 million decrease in the average balance to $701.4 million for the six months ended June 30, 2025 from $711.7 million for the six months ended June 30, 2024.

Interest income on securities increased $390,000, or 11.5%, to $3.8 million for the six months ended June 30, 2025 from $3.4 million for the six months ended June 30, 2024 primarily due to a 143 basis point increase in the average yield from 3.85% for the six months ended June 30, 2024 to 5.28% for the six months ended June 30, 2025, which was offset by a $32.9 million decrease in the average balance to $143.2 million for the six months ended June 30, 2025 from $176.1 million for the six months ended June 30, 2024. The decrease in the average balance and the increase in the yield was as a result of the balance sheet restructuring undertaken in the fourth quarter of 2024, where certain lower-yielding securities were sold, a portion of the proceeds were reinvested into higher-yielding securities and all remaining held to maturity securities were reclassified as available for sale.

Interest expense decreased $1.0 million, or 6.6%, from $15.1 million for the six months ended June 30, 2024 to $14.1 million for the six months ended June 30, 2025 due to lower average balances on certificates of deposit and borrowings and a lower rate paid on certificates of deposit. During the six months ended June 30, 2025, the use of hedges reduced the interest expense on the Federal Home Loan Bank advances and brokered deposits by $363,000. At June 30, 2025, cash flow hedges used to manage interest rate risk had a notional value of $65.0 million, while fair value hedges totaled $60.0 million in notional value. 

Interest expense on interest-bearing deposits decreased $938,000, or 7.7%, to $11.3 million for the six months ended June 30, 2025 from $12.2 million for the six months ended June 30, 2024. The decrease was due to a 16 basis point decrease in the average cost of deposits to 3.75% for the six months ended June 30, 2025 from 3.91% for the six months ended June 30, 2024. The decrease in the average cost was driven by a 21 basis point decrease in the average cost of certificates of deposit to 4.13% for the six months ended June 30, 2025 from 4.34% for the six months ended June 30, 2024. The decrease in the average cost of deposits was due to the lower interest rate environment and a change in the composition of the deposit portfolio. The average balances of certificates of deposit decreased $33.8 million to $483.4 million for the six months ended June 30, 2025 from $517.2 million for the six months ended June 30, 2024 while average NOW/money market accounts and savings accounts increased $7.7 million and $3.6 million for the six months ended June 30, 2025, respectively, compared to the six months ended June 30, 2024.

Interest expense on Federal Home Loan Bank advances decreased $62,000, or 2.1%. The decrease was primarily due to a decrease in the average balance of $16.2 million to $144.1 million for the six months ended June 30, 2025 from $160.3 million for the six months ended June 30, 2024. The decrease was offset by an increase in the average cost of borrowings of 33 basis points to 3.99% for the six months ended June 30, 2025 from 3.66% for the six months ended June 30, 2024 due to the new borrowings being for shorter durations at higher rates. 

Net interest income increased $1.9 million, or 35.1%, to $7.3 million for the six months ended June 30, 2025 from $5.4 million for the six months ended June 30, 2024. The increase reflected a 47 basis point increase in our net interest rate spread to 1.15% for the six months ended June 30, 2025 from 0.68% for the six months ended June 30, 2024. Our net interest margin increased 50 basis points to 1.70% for the six months ended June 30, 2025 from 1.20% for the six months ended June 30, 2024.

We recorded a $80,000 recovery of credit losses for the six months ended June 30, 2025 compared to a $70,000 provision for credit losses for the six-month period ended June 30, 2024. The decrease in the allowance for credit losses was due to the decrease in loans and held-to-maturity securities.

Non-interest income increased $619,000, or 102.7%, to $1.2 million for the six months ended June 30, 2025 from $602,000 for the six months ended June 30, 2024. Bank-owned life insurance income increased $564,000, or 132.0%, due to a death benefit related to a former employee and higher balances during 2025. In addition to the death benefit, gains on sale of loans also increased by $38,000 when compared to the comparable period in 2024.

For the six months ended June 30, 2025, non-interest expense increased $345,000, or 4.7%, over the comparable 2024 period. Professional fees increased $114,000, or 25.0%, due to higher audit and consulting expense. Occupancy and equipment costs increased $574,000, or 77.8%, as a result of the lease-buyback transaction completed in the fourth quarter of 2024, which resulted in increased lease expense going forward. These were offset by a $162,000, or 3.8%, reduction in salaries and employee benefit, which decreased due to lower headcount, advertising expense, which decreased by $104,000, or 46.0%, and other non-interest expense, which decreased $102,000, or 20.0%.

Income tax expense increased $488,000, or 85.8%, to a benefit of $81,000 for the six months ended June 30, 2025 from a $568,000 benefit for the six months ended June 30, 2024. The decrease was due to an increase of $2.3 million in income. 

Balance Sheet Analysis

Total assets were $921.8 million at June 30, 2025, representing a decrease of $49.7 million, or 5.1%, from December 31, 2024. Cash and cash equivalents decreased $31.9 million during the period primarily due to the paydown of borrowings. Net loans decreased $18.5 million, or 2.6%, due to $32.0 million in repayments, partially offset by new production of $15.5 million. This resulted in a $14.5 million decrease in the balance of residential loans and a $17.4 million decrease in construction loans, offset by a $7.3 million and $8.0 million of commercial real estate and multi-family loans, respectively. 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 available for sale increased $4.3 million or 3.1%, due to new purchases of mortgage-backed securities. 

Delinquent loans increased $6.1 million to $20.4 million, or 2.94% of total loans, at June 30, 2025, compared to $14.3 million at December 31, 2024. The increase was primarily due to one commercial real estate loan with a balance of $7.1 million, which is considered well-secured, accruing and in the process of collection. During the same timeframe, non-performing assets decreased from $14.0 million at December 31, 2024 to $13.9 million, which represented 1.50% of total assets at June 30, 2025. No loans were charged-off during the three or six months ended June 30, 2025 or June 30, 2024. The Company's allowance for credit losses related to loans was 0.37% of total loans and 18.69% of non-performing loans at June 30, 2025 compared to 0.37% of total loans and 18.77% of non-performing loans at December 31, 2024. The Bank does not have any exposure to commercial real estate loans secured by office space. At June 30, 2025, the Company had no allowance for credit losses related to held-to-maturity securities, as the Company did not hold any held-to-maturity securities at June 30, 2025 or at December 31, 2024. 

Total liabilities decreased $50.8 million, or 6.1%, to $783.4 million mainly due to a $13.9 million decrease in deposits and by a $36.2 million decrease in borrowings. Total deposits decreased $14.0 million, or 2.2%, to $628.2 million at June 30, 2025 from $642.2 million at December 31, 2024. The decrease in deposits reflected a decrease in certificate of deposit accounts, which decreased by $11.5 million to $481.8 million from $493.3 million at December 31, 2024, a decrease in NOW deposit accounts, which decreased by $2.8 million to $52.6 million from $55.4 million at December 31, 2024, a decrease in money market deposit accounts, which decreased by $2.3 million to $11.7 million from $14.0 million at December 31, 2024, and by a decrease in noninterest bearing demand accounts, which decreased by $2.0 million from $32.7 million at December 31, 2024 to $30.7 million at June 30, 2025. At June 30, 2025, brokered deposits were $108.0 million or 17.2% of deposits and municipal deposits were $25.4 million or 4.1% of deposits. At June 30, 2025, uninsured deposits represented 9.1% of the Bank's total deposits. Federal Home Loan Bank advances decreased $36.2 million, or 21.0%, due to paydown of existing borrowings. Short-term borrowings increased $10.5 million, or 35.6%, to $40.0 million at June 30, 2025 from $29.5 million at December 31, 2024, while long-term borrowings decreased $46.7 million, or 32.8%, to $95.9 million at June 30, 2025 from $142.7 million at December 31, 2024. Total borrowing capacity at the Federal Home Loan Bank is $241.3 million of which $139.0 million has been advanced.

Total stockholders' equity increased $1.2 million to $138.4 million, primarily due to net income of $955,000. At June 30, 2025, the Company's ratio of average stockholders' equity-to-total assets was 14.96%, compared to 13.99% at December 31, 2024.

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, the imposition of tariffs or other domestic or international governmental policies and retaliatory responses, real estate market values in the Bank's lending area, changes in liquidity, including the size and composition of our deposit portfolio and 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, economic assumptions or changes in our methodology, either of which may impact our allowance for credit losses calculation, 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
		June 30, 2025				December 31, 2024
Assets
Cash and due from banks		$	9,471,838			$	18,020,527
Interest-bearing deposits in other banks			10,861,717				34,211,681
Cash and cash equivalents			20,333,555				52,232,208
Securities available for sale, at fair value			144,602,468				140,307,447
Loans, net of allowance for credit losses of $2,590,950 and $2,620,949, respectively			693,211,303				711,716,236
Premises and equipment, net			4,561,786				4,727,302
Federal Home Loan Bank (FHLB) stock and other restricted securities			7,204,900				8,803,000
Accrued interest receivable			4,225,196				4,232,563
Core deposit intangibles			129,255				152,893
Bank-owned life insurance			31,329,401				31,859,604
Right of use asset			10,506,417				10,776,596
Other assets			5,730,379				6,682,035
Total Assets		$	921,834,660			$	971,489,884
Liabilities and Equity
Non-interest bearing deposits		$	30,696,810			$	32,681,963
Interest bearing deposits			597,532,976				609,506,079
Total deposits			628,229,786				642,188,042
FHLB advances-short term			40,000,000				29,500,000
FHLB advances-long term			95,944,439				142,673,182
Advance payments by borrowers for taxes and insurance			3,223,479				2,809,205
Lease liabilities			10,579,107				10,780,363
Other liabilities			5,418,148				6,249,932
Total liabilities			783,394,959				834,200,724
Stockholders' Equity
Preferred stock $0.01 par value 1,000,000 shares authorized, none issued and outstanding at June 30, 2025 and December 31, 2024			—				—
Common stock $0.01 par value, 30,000,000 shares authorized, 13,008,389 issued and outstanding at June 30, 2025 and 13,059,175 at December 31, 2024			130,083				130,592
Additional paid-in capital			55,260,550				55,269,962
Retained earnings			90,961,990				90,006,648
Unearned ESOP shares (369,670 shares at June 30, 2025 and 382,933 shares at December 31, 2024)			(4,369,992	)			(4,520,594	)
Accumulated other comprehensive loss			(3,542,930	)			(3,597,448	)
Total stockholders' equity			138,439,701				137,289,160
Total liabilities and stockholders' equity		$	921,834,660			$	971,489,884

BOGOTA FINANCIAL CORP. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2025				2024				2025				2024
Interest income
Loans, including fees		$	8,291,923			$	8,299,404			$	16,895,052			$	16,506,796
Securities
Taxable			1,943,360				1,846,717				3,773,754				3,363,060
Tax-exempt			2,894				13,124				5,789				26,272
Other interest-earning assets			266,987				314,964				754,158				639,268
Total interest income			10,505,164				10,474,209				21,428,753				20,535,396
Interest expense
Deposits			5,524,138				6,253,895				11,286,462				12,223,776
FHLB advances			1,286,421				1,476,600				2,854,448				2,916,669
Total interest expense			6,810,559				7,730,495				14,140,910				15,140,445
Net interest income			3,694,605				2,743,714				7,287,843				5,394,951
(Recovery) provision for credit losses			—				35,000				(80,000	)			70,000
Net interest income after (recovery) provision for credit losses			3,694,605				2,708,714				7,367,843				5,324,951
Non-interest income
Fees and service charges			59,755				49,203				115,574				107,790
Gain on sale of loans			8,768				—				37,830				—
Bank-owned life insurance			228,392				215,056				990,623				427,015
Other			34,795				38,945				77,055				67,477
Total non-interest income			331,710				303,204				1,221,082				602,282
Non-interest expense
Salaries and employee benefits			2,059,942				2,143,388				4,140,141				4,301,953
Occupancy and equipment			640,444				366,908				1,311,913				738,025
FDIC insurance assessment			103,934				106,716				210,520				207,313
Data processing			305,034				318,520				620,731				622,125
Advertising			16,000				115,100				121,500				225,200
Director fees			170,812				151,549				330,256				307,249
Professional fees			372,364				260,112				571,094				456,897
Other			185,972				263,490				408,017				510,112
Total non-interest expense			3,854,502				3,725,783				7,714,172				7,368,874
Income (loss) before income taxes			171,813				(713,865	)			874,753				(1,441,641	)
Income tax benefit			(52,582	)			(281,386	)			(80,589	)			(568,182	)
Net income (loss)		$	224,395			$	(432,479	)		$	955,342			$	(873,459	)
Earnings (loss) per Share - basic		$	0.02			$	(0.03	)		$	0.08			$	(0.07	)
Earnings (loss) per Share - diluted		$	0.02			$	(0.03	)		$	0.08			$	(0.07	)
Weighted average shares outstanding - basic			12,635,990				12,803,925				12,642,744				12,828,428
Weighted average shares outstanding - diluted			12,641,179				12,803,925				12,644,701				12,828,428

BOGOTA FINANCIAL CORP. SELECTED RATIOS (unaudited)
		At or For the Three Months								At or for the Six Months
		Ended June 30,								Ended June 30,
		2025				2024				2025				2024
Performance Ratios (1):
Return (loss) on average assets (2)			0.02	%			(0.18	)%			0.10	%			(0.18	)%
Return (loss) on average equity (3)			0.16	%			(1.32	)%			0.10	%			(1.32	)%
Interest rate spread (4)			1.20	%			0.72	%			1.15	%			0.68	%
Net interest margin (5)			1.74	%			1.21	%			1.70	%			1.20	%
Efficiency ratio (6)			95.73	%			122.28	%			90.66	%			122.87	%
Average interest-earning assets to average interest-bearing liabilities			116.49	%			114.12	%			115.24	%			114.56	%
Net loans to deposits			110.34	%			109.02	%			110.34	%			109.02	%
Average equity to average assets (7)			15.02	%			13.48	%			14.88	%			14.71	%
Capital Ratios:
Tier 1 capital to average assets											15.32	%			13.52	%
Asset Quality Ratios:
Allowance for credit losses as a percent of total loans											0.37	%			0.39	%
Allowance for credit losses as a percent of non-performing loans											18.69	%			21.20	%
Net charge-offs to average outstanding loans during the period											0.00	%			0.00	%
Non-performing loans as a percent of total loans											2.00	%			1.82	%
Non-performing assets as a percent of total assets											1.50	%			1.33	%

(1	)	Certain performance ratios for the three and six months ended June 30, 2025 and 2024 are annualized.
(2	)	Represents net income (loss) divided by average total assets.
(3	)	Represents net income (loss) 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 2025 and 2024.
(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 2025 and 2024.
(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 June 30, 2025 and December 31, 2024:

		June 30,				December 31,
		2025				2024
		(unaudited)
Real estate:
Residential First Mortgage		$	458,212,962			$	472,747,542
Commercial Real Estate			125,349,129				118,008,866
Multi-Family Real Estate			82,118,178				74,152,418
Construction			25,766,387				43,183,657
Commercial and Industrial			4,282,269				6,163,747
Consumer			73,328				80,955
Total loans			695,802,253				714,337,185
Allowance for credit losses			(2,590,950	)			(2,620,949	)
Net loans		$	693,211,303			$	711,716,236

The following tables set forth the distribution of total deposit accounts, by account type, at the dates indicated:

		At June 30,												At December 31,
		2025												2024
		Amount				Percent				Average Rate				Amount				Percent				Average Rate
		(unaudited)
Noninterest bearing demand accounts		$	30,696,810				4.89	%			—	%		$	32,681,963				5.09	%			—	%
NOW accounts			52,611,377				8.37	%			2.64				55,378,051				8.62	%			2.53
Money market accounts			11,677,716				1.86	%			0.48				13,996,460				2.18	%			0.58
Savings accounts			51,419,664				8.18	%			2.02				46,851,793				7.30	%			1.90
Certificates of deposit			481,824,219				76.70	%			3.88				493,279,775				76.81	%			4.37
Total		$	628,229,786				100.00	%			3.37	%		$	642,188,042				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 June 30,
		2025												2024
		Average Balance				Interest and Dividends				Yield/ Cost				Average Balance				Interest and Dividends				Yield/ Cost
		(Dollars in thousands)
Assets:		(unaudited)
Cash and cash equivalents		$	9,976			$	106				4.26	%		$	8,644			$	127				5.90	%
Loans			697,792				8,292				4.77	%			710,058				8,299				4.70	%
Securities			141,141				1,946				5.52	%			185,497				1,860				4.01	%
Other interest-earning assets			7,085				161				9.09	%			8,689				188				8.66	%
Total interest-earning assets			855,994				10,505				4.92	%			912,888				10,474				4.61	%
Non-interest-earning assets			65,094												58,933
Total assets		$	921,088											$	971,821
Liabilities and equity:
NOW and money market accounts		$	73,261			$	447				2.44	%		$	67,687			$	329				1.96	%
Savings accounts			48,751				249				2.05	%			44,093				205				1.87	%
Certificates of deposit (1)			482,516				4,828				4.01	%			517,882				5,720				4.44	%
Total interest-bearing deposits			604,528				5,524				3.67	%			629,662				6,254				3.99	%
Federal Home Loan Bank advances (1)			130,277				1,286				3.96	%			170,295				1,476				3.49	%
Total interest-bearing liabilities			734,805				6,810				3.72	%			799,957				7,730				3.89	%
Non-interest-bearing deposits			32,076												39,162
Other non-interest-bearing liabilities			15,894												1,654
Total liabilities			782,775												840,773
Total equity			138,313												131,048
Total liabilities and equity		$	921,088											$	971,821
Net interest income						$	3,695											$	2,744
Interest rate spread (2)											1.20	%											0.72	%
Net interest margin (3)											1.74	%											1.21	%
Average interest-earning assets to average interest-bearing liabilities			116.49	%											114.12	%

1.	Cash flow and fair value hedges are used to manage interest rate risk. During the three months ended June 30, 2025 and 2024, the net effect on interest expense on the Federal Home Loan Bank advances and certificates of deposit was a reduced expense of $186,000 and $461,000, 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.

		Six Months Ended June 30,
		2025												2024
		Average Balance				Interest and Dividends				Yield/ Cost				Average Balance				Interest and Dividends				Yield/ Cost
		(Dollars in thousands)
Assets:
Cash and cash equivalents		$	13,270			$	371				5.58	%		$	8,505			$	276				6.50	%
Loans			701,423				16,894				4.82	%			711,744				16,507				4.64	%
Securities			143,199				3,779				5.28	%			176,081				3,389				3.85	%
Other interest-earning assets			7,692				384				9.97	%			8,395				363				8.65	%
Total interest-earning assets			865,584				21,428				4.95	%			904,725				20,535				4.54	%
Non-interest-earning assets			61,323												59,313
Total assets		$	926,907											$	964,038
Liabilities and equity:
NOW and money market accounts		$	76,313			$	904				2.39	%		$	68,569			$	664				1.95	%
Savings accounts			47,299				475				2.02	%			43,720				403				1.85	%
Certificates of deposit (1)			483,380				9,907				4.13	%			517,189				11,157				4.34	%
Total interest-bearing deposits			606,992				11,286				3.75	%			629,478				12,224				3.91	%
Federal Home Loan Bank advances (1)			144,120				2,854				3.99	%			160,282				2,916				3.66	%
Total interest-bearing liabilities			751,112				14,140				3.80	%			789,760				15,140				3.86	%
Non-interest-bearing deposits			32,425												38,425
Other non-interest-bearing liabilities			5,420												2,763
Total liabilities			788,957												830,948
Total equity			137,950												133,090
Total liabilities and equity		$	926,907											$	964,038
Net interest income						$	7,288											$	5,395
Interest rate spread (2)											1.15	%											0.68	%
Net interest margin (3)											1.70	%											1.20	%
Average interest-earning assets to average interest-bearing liabilities			115.24	%											114.56	%

1.	Cash flow hedges are used to manage interest rate risk. During the six months ended June 30, 2025 and 2024, the net effect on interest expense on the Federal Home Loan Bank advances and certificates of deposit was a reduced expense of $363,000 and $749,000, 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 June 30, 2025												Six Months Ended June 30, 2025
		Compared to												Compared to
		Three Months Ended June 30, 2024												Six Months Ended June 30, 2024
		Increase (Decrease) Due to												Increase (Decrease) Due to
		Volume				Rate				Net				Volume				Rate				Net
		(In thousands)
Interest income:		(unaudited)
Cash and cash equivalents		$	94			$	(114	)		$	(21	)		$	201			$	(106	)		$	95
Loans receivable			(534	)			526				(7	)			(592	)			979				387
Securities			(2,142	)			2,228				86				(1,554	)			1,944				390
Other interest earning assets			(80	)			53				(27	)			(71	)			92				21
Total interest-earning assets			(2,662	)			2,693				31				(2,017	)			2,910				893
Interest expense:
NOW and money market accounts			29				89				118				79				161				240
Savings accounts			23				21				44				34				38				72
Certificates of deposit			(368	)			(524	)			(892	)			(718	)			(532	)			(1,250	)
Federal Home Loan Bank advances			(1,138	)			948				(190	)			(591	)			529				(62	)
Total interest-bearing liabilities			(1,454	)			534				(920	)			(1,197	)			197				(1,000	)
Net (decrease) increase in net interest income		$	(1,208	)		$	2,159			$	951			$	(820	)		$	2,713			$	1,893

Contacts

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