What changed in this filing

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Item 1. Financial Statements

2025-05-13 compared with 2024-11-14 · 207 added, 556 removed, 852 unchanged (47% of the section changed)

2 unchanged sentences

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

September 30, 2024

March 31, 2025

December 31, 2024

7 unchanged sentences

137,732,521 140,307,447

Securities held to maturity, net of allowance for securities credit losses of $ 108,000 and zero , respectively (fair value - $ 74,603,097 and $ 65,374,753 , respectively)

80,103,753 72,656,179

Loans, net of allowance for credit losses of $ 2,590,950 and $ 2,620,949 , respectively

10 unchanged sentences

31,112,915 31,859,604

Right of use asset

10,624,725 10,776,596

7,329,182 6,682,035

$ 930,191,837 $ 971,489,884

Liabilities and Equity

11 unchanged sentences

2,707,508 2,809,205

Lease liabilities

10,667,946 10,780,363

Other liabilities

3 unchanged sentences

Stockholders’ Equity

Preferred stock $ 0.01 par value 1,000,000 shares authorized, none issued and outstanding at September 30, 2024 and December 31, 2023

Common stock $ 0.01 par value, 30,000,000 shares authorized, 13,092,357 issued and outstanding at September 30, 2024 and 13,279,230 at December 31, 2023

Preferred stock $ 0.01 par value 1,000,000 shares authorized, none issued and outstanding at March 31, 2025 and December 31, 2024

Common stock $ 0.01 par value, 30,000,000 shares authorized, 13,008,964 issued and outstanding at March 31, 2025 and 13,059,175 at December 31, 2024

130,089 130,592

3 unchanged sentences

90,737,595 90,006,648

Unearned ESOP shares ( 389,674 shares at September 30, 2024 and 409,750 shares at December 31, 2023)

Unearned ESOP shares ( 376,338 shares at March 31, 2025 and 382,933 shares at December 31, 2024)

( 4,445,293 ) ( 4,520,594 )

9 unchanged sentences

Three Months Ended

Nine Months Ended

September 30,

Interest income

6 unchanged sentences

Net interest income

Provision (recovery) for credit losses

Net interest income after provision (recovery) for credit losses

(Recovery) provision for credit losses

Net interest income after (recovery) provision for credit losses

Non-interest income

11 unchanged sentences

Total non-interest expense

(Loss) income before income taxes

Income tax (benefit) expense

Net (loss) income

(Loss) earnings per Share - basic

(Loss) earnings per Share - diluted

Income (loss) before income taxes

Income tax benefit

Net income (loss)

Earnings (loss) per Share - basic

Earnings (loss) per Share - diluted

Weighted average shares outstanding - basic

4 unchanged sentences

Three Months Ended

Nine Months Ended

September 30,

Net (loss) income

Other comprehensive (loss) income:

Net income (loss)

Other comprehensive income (loss):

Net unrealized gain (loss) on securities available for sale:

Defined benefit retirement plans:

Reclassification adjustment for amortization of prior service cost and net (loss) gain included in salaries and employee benefits

Reclassification adjustment for amortization of prior service cost and net gain included in salaries and employee benefits

Unrealized (loss) gain on swap contracts accounted for as cash flow hedges

8 unchanged sentences

13,279,230 $ 132,792 $ 56,149,915 $ 92,177,068 $ ( 4,821,798 ) $ ( 6,464,774 ) $ 137,173,203

Adoption of ASU 326 credit losses

— — — ( 440,980 ) — — ( 440,980 )

— — — 992,707 — — 992,707

Other comprehensive loss

— — — — — ( 300,572 ) ( 300,572 )

Stock based compensation

— — 233,193 — — — 233,193

Stock purchased and retired

( 126,660 ) ( 1,266 ) ( 1,401,568 ) — — — ( 1,402,834 )

ESOP Shares released ( 25,789 shares)

— — ( 2,916 ) — 75,301 — 72,385

Balance March 31, 2023

13,572,356 $ 135,723 $ 57,928,185 $ 92,527,240 $ ( 5,047,701 ) $ ( 6,457,188 ) $ 139,086,259

— — — 856,641 — — 856,641

Other comprehensive loss

— — — — — ( 191,641 ) ( 191,641 )

Stock based compensation

— — 233,193 — — — 233,193

Stock purchased and retired

( 89,899 ) ( 899 ) ( 839,563 ) — — — ( 840,462 )

ESOP Shares released ( 25,789 shares)

— — ( 20,813 ) — 75,301 — 54,488

Balance June 30, 2023

13,482,457 $ 134,824 $ 57,301,002 $ 93,383,881 $ ( 4,972,400 ) $ ( 6,648,829 ) $ 139,198,478

— — — ( 29,053 ) — — ( 29,053 )

Other comprehensive income

— — — — — ( 978,131 ) ( 978,131 )

Stock based compensation

— — 233,193 — — — 233,193

Stock purchased and retired

( 108,691 ) ( 1,087 ) ( 821,172 ) — — — ( 822,259 )

ESOP Shares released ( 25,789 shares)

— — ( 24,274 ) — 75,301 — 51,027

Balance September 30, 2023

13,373,766 $ 133,737 $ 56,688,749 $ 93,354,828 $ ( 4,897,099 ) $ ( 7,626,960 ) $ 137,653,255

Balance January 1, 2024

13,279,230 $ 132,792 $ 56,149,915 $ 92,177,068 $ ( 4,821,798 ) $ ( 6,464,774 ) $ 137,173,203

— — — ( 440,980 ) — — ( 440,980 )

Other comprehensive loss

— — — — — ( 300,572 ) ( 300,572 )

Restricted stock issuance

8 unchanged sentences

13,256,147 132,461 56,090,019 91,736,088 ( 4,746,497 ) ( 6,765,346 ) $ 136,446,725

— — — ( 432,479 ) — — ( 432,479 )

Other comprehensive income

— — — — — 783,507 783,507

Stock based compensation

— — 237,093 — — — 237,093

Stock purchased and retired

( 107,323 ) ( 1,073 ) ( 733,660 ) — — — ( 734,733 )

ESOP shares released ( 6,447 shares)

— — ( 31,768 ) — 75,301 — 43,533

Balance June 30, 2024

Balance January 1, 2025

13,059,175 $ 130,592 $ 55,269,962 $ 90,006,648 $ ( 4,520,594 ) $ ( 3,597,448 ) $ 137,289,160

8 unchanged sentences

— — ( 24,832 ) — 75,301 — 50,469

Balance September 30, 2024

Balance March 31, 2025

13,008,964 $ 130,089 $ 55,068,598 $ 90,737,595 $ ( 4,445,293 ) $ ( 3,237,183 ) $ 138,253,806

2 unchanged sentences

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the nine months ended

September 30,

For the three months ended

Cash flows from operating activities

Net (loss) income

Adjustments to reconcile net (loss) income to net cash (used for) provided by operating activities:

Amortization of intangible assets

Provision (recovery) for credit losses

Net income (loss)

Adjustments to reconcile net income (loss) to net cash used for operating activities:

Accretion of intangible assets

(Recovery) provision for credit losses

Depreciation of premises and equipment

Amortization of deferred loan costs, net

(Accretion) amortization of deferred loan (fees) costs, net

Amortization of premiums and accretion of discounts on securities, net

Deferred tax benefit

Deferred income tax (benefit)

Gain on sale of loans

7 unchanged sentences

Net changes in other liabilities

Net cash (used for) provided by operating activities

Net cash used for operating activities

Cash flows from investing activities

3 unchanged sentences

Maturities, calls, and repayments of securities held to maturity

Purchase of loan pool

Net decrease in loans

2 unchanged sentences

Redemption of FHLB stock

Net cash (used in) provided by investing activities

Net cash provided by (used for) investing activities

Cash flows from financing activities

Net increase (decrease) in deposits

Net increase (decrease) in short-term FHLB advances

Net (decrease) increase in deposits

Net decrease in short-term FHLB advances

Proceeds from long-term FHLB non-repo advances

1 unchanged sentence

Repurchase of common stock

Issuance of common stock

Net increase in advance payments from borrowers for taxes and insurance

Net cash provided by (used in) financing activities

Net (decrease) increase in cash and cash equivalents

Net (decrease) increase in advance payments from borrowers for taxes and insurance

Net cash (used for) provided by financing activities

Net decrease in cash and cash equivalents

Cash and cash equivalents at beginning of year

Cash and cash equivalents at September 30,

Cash and cash equivalents at March 31,

Supplemental cash flow information

2 unchanged sentences

Fair value change in cash flow hedges

Fair value change in fair value hedges

Fair value change in fair value hedges, net

See accompanying notes to unaudited consolidated financial statements.

10 unchanged sentences

was formed to buy, sell and hold investment securities.

Bogota Properties, LLC was inactive at September 30, 2024 and December 31, 2023 .

Bogota Properties, LLC was inactive at March 31, 2025 and December 31, 2024 .

The Bank generally originates residential, commercial and consumer loans to, and accepts deposits from, customers in New Jersey.

4 unchanged sentences

Reclassifications had no effect on prior year net income or stockholders' equity.

(Loss) Earnings per Share:

Basic (loss) earnings per share (“EPS”) is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period.

Earnings (Loss) per Share:

Basic earnings (loss) per share (“EPS”) is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period.

For purposes of calculating basic EPS, weighted average common shares outstanding excludes unallocated employee stock ownership plan shares that have not been committed for release and non-vested shares of restricted stock.

1 unchanged sentence

The potentially diluted shares would then be included in the weighted average number of shares outstanding for the period using the treasury stock method.

For the three and nine months ended September 30, 2024 and September 30, 2023 , options to purchase 511,119 and 523,619 c ommon shares, respectively, with an exercise price of $ 10.45 were outstanding but were not included in the computation of diluted earnings per common share because to do so would be anti-dilutive.

For the three months ended March 31, 2025 and March 31, 2024 , options to purchase 508,619 and 523,619 c ommon shares, respectively, with an exercise price of $ 10.45 were outstanding but were not included in the computation of diluted earnings per common share because to do so would be anti-dilutive.

Anti-dilutive options are those options with exercise prices in excess of the weighted average market value for the periods presented.

For the three and nine months ended September 30, 2024 and for the three and nine months ended September 30, 2023 , a ll grants of non-vested restricted stock were excluded from the computation of diluted earnings per share , because to include such shares would have been anti-dilutive.

The following is a reconciliation of the numerators and denominators of the basic and diluted earnings per share calculations for the three and nine months ended September 30, 2024 and 2023 .

For the three months ended September 30, 2024

For the three months ended September 30, 2023

For the nine months ended September 30, 2024

For the nine months ended September 30, 2023

Net (loss) income

For the three months ended March 31, 2025 , 947 shares of outstanding non-vested stock were added in the computation of diluted earnings per share.

For the three months ended March 31, 2024 , a ll outstanding non-vested restricted stock were excluded from the computation of diluted earnings per share, because to include such shares would have been anti-dilutive.

The following is a reconciliation of the numerators and denominators of the basic and diluted earnings per share calculations for the three months ended March 31, 2025 and 2024 .

For the three months ended March 31, 2025

For the three months ended March 31, 2024

Net income (loss)

$ 730,947 $ ( 440,980 )

1 unchanged sentence

12,649,573 12,852,930

Effect of unvested restricted stock

Effect of non-unvested restricted stock

Weighted average shares outstanding - diluted

12,650,520 12,852,930

(Loss) earnings per common share:

Earnings (loss) per common share:

$ 0.06 $ ( 0.03 )

13 unchanged sentences

The results of operations for any interim periods are not necessarily indicative of the results which may be expected for the entire year or any other period.

BOGOTA FINANCIAL CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

The unaudited financial statements and other financial information contained in this Quarterly Report on Form 10 -Q should be read in conjunction with the audited financial statements, and related notes, of the Company at and for the year ended December 31, 2024 .

Not yet effective Accounting Pronouncements:

In November 2023, the FASB issued ASU 2023 - 07, Segment Reporting (TOPIC 280 ):

Improvements to Reportable Segment Disclosures , which requires public entities to disclose information about their reportable segments’ significant expenses on an interim and annual basis.

This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024.

Early adoption is permitted.

Public entities are required to adopt the changes retrospectively, recasting each prior period disclosure for which a comparative income statement is presented in the period of adoption.

This update is not expected to have a material impact on the Company’s financial statements.

In December 2023, the FASB issued ASU 2023 - 09, Income Taxes (Topic 740 ):

Improvements to Income Tax Disclosures , which provides for improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information.

This guidance is effective for public business entities for annual periods beginning after December 15, 2024.

This update is not expected to have a material impact on the Company’s financial statements.

In March 2024, the FASB issued ASU 2024 - 01, Compensation - Stock Compensation (Topic 718 ), which amended the guidance in ASC 718 to add an example showing how to apply the scope guidance to determine whether profits interest and similar awards should be accounted for as share-based payment arrangements.

For public business entities, the guidance is effective for fiscal years beginning after December 15, 2024, and interim periods within those fiscal years.

For all other entities, it is effective for fiscal years beginning after December 15, 2025, and interim periods within those fiscal years.

This update is not expected to have a significant impact on the Company's financial statements.

Segment Reporting :

The Company operates one reportable segment of business, “retail banking”.

Through its community banking segment, the Company provides a broad range of retail and commercial banking services.

The accounting policies of the retail banking segment are the same as those described in the summary of significant accounting policies.

The Company's chief operating decision maker ("CODM") is the President and Chief Executive Officer, who decides how to allocate resources based on net income that also is reported on the income statement as consolidated net income.

The measure of segment assets is reported on the balance sheet as total consolidated assets.

BOGOTA FINANCIAL CORP.

1 unchanged sentence

NOTE 2 – SECURITIES AVAILABLE FOR SALE

The following table summarizes the amortized cost, fair value, and gross unrealized gains and losses of securities available for sale, by contractual maturity, none of which had an allowance for credit losses at September 30, 2024 and December 31, 2023 :

September 30, 2024

March 31, 2025

government and agency obligations

8 unchanged sentences

23,950,000 177,790 ( 1,050,658 ) 23,077,132

Greater than ten years

6,333,526 194,444 — 6,527,970

Municipal obligations due in:

Five through ten years

506,449 — ( 91,224 ) 415,225

MBS – residential

5 unchanged sentences

government and agency obligations

Less than one year

$ 10,000,000 $ — $ ( 55,870 ) $ 9,944,130

One through five years

7 unchanged sentences

25,410,219 202,205 ( 1,389,376 ) 24,223,048

Greater than ten years

4,321,924 202,576 — 4,524,500

Municipal obligations due in:

Greater than ten years

506,706 — ( 108,431 ) 398,275

MBS – residential

5 unchanged sentences

Federal Home Loan Mortgage Corporation (“FHLMC”), Federal National Mortgage Association (“FNMA”) and Government National Mortgage Association (“GNMA”).

There w ere no sales of securities during the three and nine months ended September 30, 2024 or September 30, 2023 .

The age of unrealized losses and the fair value of related securities as of September 30, 2024 and December 31, 2023 were as follows:

There w ere no sales of securities during the three months ended March 31, 2025 or March 31, 2024 .

The age of unrealized losses and the fair value of related securities as of March 31, 2025 and December 31, 2024 were as follows:

Less Than 12 Months

12 Months or More

September 30, 2024

March 31, 2025

government and agency obligations

2 unchanged sentences

4,424,335 ( 68,364 ) 13,845,286 ( 1,077,039 ) 18,269,621 ( 1,145,403 )

Municipal obligations

— — 415,225 ( 91,224 ) 415,225 ( 91,224 )

MBS – residential

10 unchanged sentences

- - 15,965,261 ( 1,453,923 ) 15,965,261 ( 1,453,923 )

Municipal obligations

- - 398,275 ( 108,431 ) 398,275 ( 108,431 )

MBS – residential

7 unchanged sentences

Unrealized losses on corporate bonds available for sale are not considered to be credit losses because the bonds are of high credit quality, management does not intend to sell and it is likely that management will not be required to sell the securities prior to their anticipated recovery, and the decline in fair value was largely due to changes in interest rates and other market conditions.

At September 30, 2024 , 100% of the mortgage-backed securities were issued by U.S.

At March 31, 2025 , 100 % of the mortgage-backed securities were issued by U.S.

government-sponsored entities and agencies, primarily FNMA and FHLMC, institutions which the government has affirmed its commitment to support.

There were 34 securities in a l oss position at September 30, 2024 .

Because the decline in fair value was attributable to changes in interest rates and illiquidity, and not credit quality, and because the Bank does not have the intent to sell these mortgage-backed securities and it is likely that it will not be required to sell the securities before their anticipated recovery, the Bank does not consider these losses to be credit-related at September 30, 2024 .

As of September 30, 2024 , no allowance for credit loss ("ACL") was required on available for sale securities.

At September 30, 2024 and December 31, 2023 , securities available for sale with a carrying valu e of $ 98,231 and $ 113,415 were pledged to secure public deposits.

NOTE 3 – SECURITIES HELD TO MATURITY

The following table summarizes the amortized cost, fair value, and gross unrecognized gains and losses of securities held to maturity by contractual maturity at September 30, 2024 and December 31, 2023 :

September 30, 2024

Government and agency obligations due in:

Less than one year

$ 10,000,000 $ — $ ( 116,890 ) $ 9,883,110

Five through ten years

3,000,000 — ( 250,632 ) 2,749,368

Corporate bonds due in:

One through five years

8,099,945 59,158 ( 84,703 ) 8,074,400

Five through ten years

20,408,373 56,747 ( 1,816,554 ) 18,648,566

Greater than ten years

4,313,175 — ( 6,025 ) 4,307,150

Municipal obligations due in:

One through five years

900,882 — ( 25,695 ) 875,187

Five through ten years

1,588,709 158 ( 184,589 ) 1,404,278

Greater than ten years

506,960 — ( 83,495 ) 423,465

14,676,749 26,926 ( 1,108,642 ) 13,595,033

16,716,960 — ( 2,074,420 ) 14,642,540

Allowance for credit losses

( 108,000 ) — — ( 108,000 )

$ 80,103,753 $ 142,989 $ ( 5,751,645 ) $ 74,495,097

December 31, 2023

Government and agency obligations

One through five years

$ 10,000,000 $ — $ ( 314,240 ) $ 9,685,760

Five through ten years

3,000,000 — ( 372,885 ) 2,627,115

Corporate bonds due in:

One through five years

6,431,007 — ( 52,685 ) 6,378,322

Five through ten years

16,294,604 38,684 ( 2,074,007 ) 14,259,281

Greater than ten years

4,287,941 — ( 441 ) 4,287,500

Municipal obligations due in:

One through five years

901,597 — ( 55,102 ) 846,495

Five through ten years

1,591,199 784 ( 160,655 ) 1,431,328

Greater than ten years

507,716 — ( 103,356 ) 404,360

12,484,366 7,223 ( 1,457,104 ) 11,034,485

17,157,749 — ( 2,737,642 ) 14,420,107

$ 72,656,179 $ 46,691 $ ( 7,328,117 ) $ 65,374,753

Management completed an evaluation of the held to maturity securities portfolio to identify whether any ACL is required for the three and nine months ended September 30, 2024 and 2023 , the results of which are presented in the below table, which summarizes the allowance and provision for credit losses related to the Company's held-to-maturity securities portfolio by type:

government and agency obligations

Corporate bonds

Municipal obligations

MBS – residential

MBS – commercial

For the three months ended

September 30, 2024

Allowance for credit losses:

Beginning balance

$ — $ 108,000 $ — $ — $ — $ 108,000

Provision for credit losses

Securities losses

Total ending allowance balance

$ — $ 108,000 $ — $ — $ — $ 108,000

government and agency obligations

Corporate bonds

Municipal obligations

MBS – residential

MBS – commercial

September 30, 2023

Allowance for credit losses:

Beginning balance

$ — $ — $ — $ — $ — $ —

Impact of ASC 326 adoption

Provision for credit losses

Securities losses

Total ending allowance balance

$ — $ — $ — $ — $ — $ —

government and agency obligations

Corporate bonds

Municipal obligations

MBS – residential

MBS – commercial

For the nine months ended

September 30, 2024

Allowance for credit losses:

Beginning balance

$ — $ — $ — $ — $ — $ —

Provision for credit losses

— 108,000 — — — 108,000

Securities losses

Total ending allowance balance

$ — $ 108,000 $ — $ — $ — $ 108,000

government and agency obligations

Corporate bonds

Municipal obligations

MBS – residential

MBS – commercial

September 30, 2023

Allowance for credit losses:

Beginning balance

$ — $ — $ — $ — $ — $ —

Impact of ASC 326 adoption

Provision for credit losses

Securities losses

Total ending allowance balance

$ — $ — $ — $ — $ — $ —

All of the MBSs are issued by the following government sponsored agencies:

FHLMC, FNMA and GNMA.

BOGOTA FINANCIAL CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 3 – SECURITIES HELD TO MATURITY (Continued)

The credit rating and the amortized cost of related securities were as follows:

government and agency obligations

Corporate bonds

Municipal obligations

MBS – residential

MBS – commercial

September 30, 2024

Credit Rating

$ 13,000,000 $ 3,729,721 $ 2,621,551 $ 14,676,749 $ 16,716,960 $ 50,744,981

— 6,729,237 — — — 6,729,237

— 22,362,536 375,000 — — 22,737,536

$ 13,000,000 $ 32,821,494 $ 2,996,551 $ 14,676,749 $ 16,716,960 $ 80,211,754

government and agency obligations

Corporate bonds

Municipal obligations

MBS – residential

MBS – commercial

December 31, 2023

Credit Rating

$ 13,000,000 $ 11,860,264 $ 3,000,512 $ 12,484,366 $ 17,157,749 $ 57,502,891

— 5,403,288 — — — $ 5,403,288

— — — — — $ —

— 9,750,000 — — — $ 9,750,000

$ 13,000,000 $ 27,013,552 $ 3,000,512 $ 12,484,366 $ 17,157,749 $ 72,656,179

There were 54 securities in a loss position at September 30, 2024 .

The fair value of the securities held to maturity is expected to recover as the securities approach maturity.

At September 30, 2024 and December 31, 2023 , securities held to maturity w ith a carrying amount of $ 1,231,090 and $ 1,589,747 , respectively, were pledged to secure repurchase agreements at the Federal Home Loan Bank of New York.

At September 30, 2024 and December 31, 2023 , securities held to maturity with a carrying value of $ 4,621,590 and $ 4,976,927 , respectively, were pledged to secure public deposits.

There were 52 securities in a l oss position at March 31, 2025 .

As of March 31, 2025 , no allowance for credit loss ("ACL") was required on available for sale securities.

At March 31, 2025 and December 31, 2024 , securities available for sale with a carrying valu e of $ 5,658,678 and $ 5,741,240 were pledged to secure public deposits.

NOTE 3 – LOANS

Loans are summarized as follows at September 30, 2024 and December 31, 2023 :

September 30,

Loans are summarized as follows at March 31, 2025 and December 31, 2024 :

Residential First Mortgage

16 unchanged sentences

The Bank has granted loans to officers and directors of the Bank.

At September 30, 2024 and December 31, 2023 , such loans totaled $ 2,291,851 and $ 1,610,688 , respectively.

At September 30, 2024 and December 31, 2023 , deferred loan fees were $ 2,633,263 and $ 2,873,724 , respectively.

The following table presents the activity in the ACL by portfolio segment for the three and nine months ended September 30, 2024 and 2023 :

Residential First Mortgage

Commercial Real Estate

Multi-Family Real Estate

Commercial and Industrial

Three months ended September 30, 2024

Allowance for credit losses:

Beginning balance

$ 1,836,909 $ 456,898 $ 315,495 $ 105,426 $ 33,221 $ — $ 2,747,949

Provision for (recovery) of credit losses

( 10,371 ) 5,417 ( 2,274 ) 6,692 536 — —

Loans charged off

— — — — — — —

Total ending allowance balance

$ 1,826,538 $ 462,315 $ 313,221 $ 112,118 $ 33,757 $ — $ 2,747,949

Residential First Mortgage

Commercial Real Estate

Multi-Family Real Estate

Commercial and Industrial

Three Months Ended September 30, 2023

Allowance for credit losses:

Beginning balance

$ 1,811,547 $ 539,002 $ 265,000 $ 159,000 $ 11,400 $ — $ 2,785,949

Provision for (recovery) of credit losses

( 17,720 ) ( 5,505 ) 4,925 11,700 6,600 — —

Loans charged off

— — — — — — —

Total ending allowance balance

$ 1,793,827 $ 533,497 $ 269,925 $ 170,700 $ 18,000 $ — $ 2,785,949

At March 31, 2025 and December 31, 2024 , such loans totaled $ 2,082,107 and $ 2,256,911 , respectively.

At March 31, 2025 and December 31, 2024 , deferred loan fees were $ 2,562,282 and $ 2,496,364 , respectively.

The following table presents the activity in the ACL by portfolio segment for the three months ended March 31, 2025 and 2024 :

Residential First Mortgage

2 unchanged sentences

Commercial and Industrial

Nine Months Ended September 30, 2024

Three months ended March 31, 2025

Allowance for credit losses:

12 unchanged sentences

Commercial and Industrial

Nine Months Ended September 30, 2023

Three Months Ended March 31, 2024

Allowance for credit losses:

1 unchanged sentence

$ 1,851,969 $ 437,180 $ 317,300 $ 157,500 $ 22,000 $ — $ 2,785,949

Impact of ASC 326 adoption

113,969 141,797 25,469 1,500 40 — 282,775

Provision for (recovery) of credit losses

5 unchanged sentences

$ 1,859,349 $ 464,100 $ 317,700 $ 124,100 $ 20,700 $ — $ 2,785,949

Since the Bank continues to have limited historical loss history, the majority of chances in the ACL noted in the above tables are driven by changes in the balances of the related loan segments.

For the three months ended March 31, 2025 , in addition to the recovery in the table above, the provision for loan losses also included a recovery of $ 50,000 due to a decrease in off-balance sheet commitments.

Since the Bank continues to have limited historical loss history, the majority of changes in the ACL noted in the above tables are driven by changes in the balances of the related loan segments and in the economic forecast.

BOGOTA FINANCIAL CORP.

1 unchanged sentence

NOTE 3 – LOANS (Continued)

The following table presents the balance in the ACL and the recorded investment in loans by portfolio segments and based on impairment method as of September 30, 2024 and December 31, 2023 :

The following table presents the balance of non-performing loans by portfolio segments as of March 31, 2025 and December 31, 2024 :

Nonaccrual loans beginning of period

1 unchanged sentence

Nonaccrual with no Allowance for Credit Loss

Loans Past Due 90 Days or More Still Accruing

Interest recognized on nonaccrual loans

September 30, 2024

or More Still

March 31, 2025

Residential First Mortgage

7 unchanged sentences

Nonaccrual with no Allowance for Credit Loss

Loans Past Due 90 Days or More Still Accruing

Interest recognized on nonaccrual loans

or More Still

December 31, 2024

5 unchanged sentences

$ 12,776,177 $ 13,962,695 $ 13,962,695 $ —

$ 856,659 $ 12,776,177 $ 12,776,177 $ — $ —

Collateral - dependent loans individually evaluated with the ACL by collateral type were as follows at September 30, 2024 and December 31, 2023 :

September 30, 2024

Collateral - dependent loans individually evaluated with the ACL by collateral type were as follows at March 31, 2025 and December 31, 2024 :

March 31, 2025

Portfolio segment

16 unchanged sentences

$ 13,962,695 $ —

Interest income recognized during impairment and cash-basis interest income for the three and nine months ended September 30, 2024 and 2023 was nominal.

Interest income recognized during impairment and cash-basis interest income for the three months ended March 31, 2025 and 2024 was nominal.

BOGOTA FINANCIAL CORP.

1 unchanged sentence

NOTE 3 – LOANS (Continued)

No no naccrual loans had specific reserves as of September 30, 2024 , as they were all well-secured and in the process of collection.

The Bank had no other real estate owned at either September 30, 2024 or December 31, 2023 .

The following table presents the aging of the recorded investment in past due loans as of September 30, 2024 and December 31, 2023 , by class of loans:

September 30, 2024

No no naccrual loans had specific reserves as of March 31, 2025 , as they were all well-secured and in the process of collection.

The Bank had no other real estate owned at either March 31, 2025 or December 31, 2024 .

The following table presents the aging of the recorded investment in past due loans as of March 31, 2025 and December 31, 2024 , by class of loans:

March 31, 2025

Residential First Mortgage

39 unchanged sentences

NOTE 3 – LOANS (Continued)

The following table presents loans, by risk category, loan class and year of origination as of September 30, 2024 and December 31, 2023 :

The following table presents loans, by risk category, loan class and year of origination as of March 31, 2025 and December 31, 2024 :

Term Loans by Origination Year

September 30, 2024

March 31, 2025

Revolving Loans

111 unchanged sentences

There were no loan modifications during the three -month period ended

September 30, 2024

March 31, 2025

BOGOTA FINANCIAL CORP.

4 unchanged sentences

common stock.

On September 2, 2021, 226,519 shares of restricted stock were awarded, with a grant date fair value of $ 10.45 per share.

On February 28, 2024, 10,000 shares of restricted stock were awarded, with a grant date fair value of $ 7.80 per share.

To fund the grant of restricted common stock, the Company issued shares from authorized but unissued shares.

Restricted shares granted under the 2021 Plan vest in equal installments, over a service period of five years, beginning one year from the date of grant.

Management recognizes compensation expense for the fair value of restricted shares on a straight-line basis over the requisite service period.

During the three and nine months ended September 30, 2024 , approximately $ 121,000 and $ 363,000 in expense was recognized in regard to these awards, respectively, compared to expense during the same periods ended September 30, 2023 , of approximately $ 118,000 and $ 354,000 , respectively.

The expected future compensation expense related to the 97,607 non-vested restricted shares outstanding at September 30, 2024 was approximately $ 946,000 , which is expected to be recognized over a weighted-average period of 2.10 years.

The following is a summary of the Company's restricted stock activity during the nine months ended September 30, 2024 :

The following is a summary of the Company's restricted stock activity during the three months ended March 31, 2025 :

Number of Non-vested Restricted Shares

3 unchanged sentences

$ ( 2,000 ) 7.80

$ ( 3,000 ) 10.45

Outstanding, September 30, 2024

Outstanding, March 31, 2025

92,607 $ 10.12

On September 2, 2021, options to purchase 526,119 shares of Company common stock were awarded, with a grant date fair value of $ 4.37 per option.

Stock options granted under the 2021 Plan vest in equal installments over a service period of five years beginning one year from the date of grant.

Stock options were granted at an exercise price of $ 10.45 , which was the Company's common stock price on the grant date and had an expiration period of 10 years.

Management recognizes expense for the fair value of these awards on a straight-line basis over the requisite service period.

During the three and nine months ended September 30, 2024 , approximately $ 76,000 and $ 305,000 in expense was recognized in regard to these awards, respectively compared to expense of approximately $ 112,000 and $ 335,000 for the three and nine months ended September 30, 2023 , respectively.

The expected future compensation expense related to the 204,447 non-vested options outstanding at September 30, 2024 was $ 892,000 , which is expected to be recognized over a weighted-average period of 2.00 years.

Forfeitures are accounted for as they occur through reversal of the expense on non-vested shares in the period of forfeiture.

The following is a summary of the Company's option activity during the nine months ended September 30, 2024 :

The following is a summary of the Company's option activity during the three months ended March 31, 2025 :

Number of Stock Options

5 unchanged sentences

( 1,500 ) 10.45 -

Outstanding, September 30, 2024

Outstanding, March 31, 2025

508,619 $ 10.45 6.4 $ —

Options exercisable at September 30, 2024

The aggregate intrinsic value in the table above represents the difference between the Company's closing stock price on the last trading day of the period and the exercise price, multiplied by the number of in-the-money options.

As of September 30, 2024 , there were no in-the-money options.

NOTE 6 – EMPLOYEE STOCK OWNERSHIP PLAN

In connection with our mutual-to-stock reorganization and stock offering, the Bank established an employee stock ownership plan (“ESOP”), which acquired 515,775 shares of the Company’s common stock equaling 3.92 % of the Company's outstanding shares.

The ESOP is a tax-qualified retirement plan providing employees the opportunity to own Company stock.

Bank contributions to the ESOP are allocated to eligible participants on the basis of compensation, subject to federal tax limits.

The number of shares to be allocated annually is 25,789 through 2039.

During the three and nine months ended September 30, 2024 , $ 48,000 and $ 141,314 was incurred as expense for the plan, respectively, compared to expense during the same periods ended September 30, 2023 of approximately $ 51,000 and $ 177,900 , respectively.

As of September 30, 2024 , 126,101 shares have been allocated and 389,674 shares are unallocated with a fair value of $ 3.2 million.

Options exercisable at March 31, 2025

NOTE 5 – DERIVATIVES AND HEDGING ACTIVITES

24 unchanged sentences

Interest Rate Swaps.

At September 30, 2024 , the Company had five cash flow interest rate swaps with notional amounts of $ 65.0 million hedging certain FHLB advances and brokered deposits.

At March 31, 2025 , the Company had five cash flow interest rate swaps with notional amounts of $ 65.0 million hedging certain FHLB advances and brokered deposits.

The Company also had two fair value interest rate swaps with notional amounts of $ 60.0 million hedging certain fixed-rate residential loans.

6 unchanged sentences

The gain or loss on these derivatives, as well as the offsetting loss or gain on the hedged items attributable to the hedged risk, are recognized in interest income in the Company’s consolidated statements of operations.

At December 31, 2023 , the Company had two interest rate swaps with a notional amount of $ 20.0 million to hedge certain FHLB advances and brokered deposits.

At both September 30, 2024 and December 31, 2023 , the Company had no back-to-back interest rate swaps in place with commercial banking customers.

During the three and nine months ended September 30, 2024 , the net effect on interest expense related to cash flow hedges was a reduced expense of $ 258,000 and $ 679,000 , respectively, while the net effect on interest expense related to fair value hedge during the three and nine months ended September 30, 2024 , was a reduced expense of $ 240,000 and $ 567,000 , respectively.

The table below presents the fair value of the Company’s derivative financial instruments as well as their classification in the Consolidated Statements of Financial Condition at September 30, 2024 :

September 30,

At December 31, 2024 , the Company had five interest rate swaps with a notional amount of $ 65.0 million to hedge certain FHLB advances and brokered deposits and two fair value interest rate swaps with notional amounts of $ 60.0 million hedging certain fixed-rate residential loans.

At both March 31, 2025 and December 31, 2024 , the Company had no back-to-back interest rate swaps in place with commercial banking customers.

The table below presents the fair value of the Company’s derivative financial instruments as well as their classification in the Consolidated Statements of Financial Condition at March 31, 2025 :

Asset Derivative

11 unchanged sentences

$ 235,156 $ 677,761

For the nine months ended September 30, 2024 , unrealized losses of $ 420,000 were recorded for changes in fair value of interest rate swaps with third parties and at September 30, 2024 , accrued interest was $ 233,000 .

For the three months ended March 31, 2025 , unrealized losses of $ 657,000 were recorded for changes in fair value of interest rate swaps with third parties and at March 31, 2025 , accrued interest was $ 82,000 .

The Company has agreements with counterparties that contain a provision that if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default of its derivative obligations.

During the three months ended March 31, 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 $ 177,000 and $ 288,000 respectively.

There were no changes to the value of the derivatives.

NOTE 6 – FAIR VALUE

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Quoted Prices

As of September 30, 2024

As of March 31, 2025

Securities available for sale:

3 unchanged sentences

40,063,778 — 40,063,778 —

Municipal obligations

415,225 — 415,225 —

MBS - residential

2 unchanged sentences

14,394,677 — 14,394,677 —

Cash flow and fair value hedges

Cash flow hedge

206,523 — 206,523 —

6 unchanged sentences

38,229,775 — 38,229,775 —

Municipal obligations

398,275 — 398,275 —

MBS - residential

5 unchanged sentences

$ 140,958,787 $ — $ 140,958,787 $ —

There were no transfers between level 1 and level 2 during the nine months ended September 30, 2024 .

The carrying amounts and estimated fair values of financial instruments not measured at fair value, at September 30, 2024 and December 31, 2023 , were as follows:

There were no transfers between level 1 and level 2 during the three months ended March 31, 2025 .

The carrying amounts and estimated fair values of financial instruments not measured at fair value, at March 31, 2025 and December 31, 2024 , were as follows:

Fair Value Measurement Placement

(In thousands)

September 30, 2024

March 31, 2025

Financial instruments - assets

Investment securities held-to-maturity

$ 704,075 $ 672,865 $ - $ - $ 672,865

708,897 680,139 — — 680,139

Financial instruments - liabilities

6 unchanged sentences

Financial instruments - assets

Investment securities held-to-maturity

$ 714,337 $ 686,977 $ — $ — $ 686,977

714,687 672,347 — — 672,347

Financial instruments - liabilities

8 unchanged sentences

NOTE 7 – ACCUMULATED OTHER COMPREHENSIVE LOSS

The components of accumulated other comprehensive loss included in equity (net of tax) for the three and nine months ended September 30, 2024 and 2023 was as follows:

The components of accumulated other comprehensive loss included in equity (net of tax) for the three months ended March 31, 2025 and 2024 was as follows:

Unrealized gain

4 unchanged sentences

Three months ended

September 30, 2024

Beginning balance

$ ( 6,676,939 ) $ 5,654 $ 689,446 $ ( 5,981,839 )

Other comprehensive (loss) income before reclassification

2,070,862 — ( 936,818 ) 1,134,044

Amounts reclassified

Net period comprehensive (loss) income

2,070,862 — ( 936,818 ) 1,134,044

Ending balance

$ ( 4,606,077 ) $ 5,654 $ ( 247,372 ) $ ( 4,847,795 )

September 30, 2023

Beginning balance

$ ( 7,118,869 ) $ 22,592 $ 447,448 $ ( 6,648,829 )

Other comprehensive (loss) income before reclassification

( 1,146,582 ) — 184,997 ( 961,585 )

Amounts reclassified

— ( 16,546 ) — ( 16,546 )

Net period comprehensive (loss) income

( 1,146,582 ) ( 16,546 ) 184,997 ( 978,131 )

Ending balance

$ ( 8,265,451 ) $ 6,046 $ 632,445 $ ( 7,626,960 )

Unrealized gain and losses on available for sale securities

Benefit plans

Nine Months Ended September 30, 2024

March 31, 2025

Beginning balance

$ ( 4,005,169 ) $ ( 60,526 ) $ 468,247 $ ( 3,597,448 )

Other comprehensive (loss) income before reclassification

Other comprehensive income (loss) before reclassification

680,043 — ( 319,778 ) 360,265

Amounts reclassified

— 3,105 — 3,105

Net period comprehensive (loss) income

Net period comprehensive income (loss)

680,043 — ( 319,778 ) 360,265

1 unchanged sentence

$ ( 3,325,126 ) $ ( 60,526 ) $ 148,469 $ ( 3,237,183 )

Nine Months Ended September 30, 2023

March 31, 2024

Beginning balance

3 unchanged sentences

Amounts reclassified

— ( 49,638 ) — ( 49,638 )

Net period comprehensive (loss) income

5 unchanged sentences

Management ’ s Discussion and Analysis of Financial Condition and Results of Operations

Management’s discussion and analysis of financial condition and results of operations at September 30, 2024 and December 31, 2023 and for the three and nine months ended September 30, 2024 and September 30, 2023 is intended to assist in understanding the financial condition and results of operations of Bogota Financial Corp.

Management’s discussion and analysis of financial condition and results of operations at March 31, 2025 and December 31, 2024 and for the three months ended March 31, 2025 and March 31, 2024 is intended to assist in understanding the financial condition and results of operations of Bogota Financial Corp.

The information contained in this section should be read in conjunction with the unaudited financial statements and the notes thereto appearing in Part I, Item 1 of this Quarterly Report on Form 10-Q.

3 unchanged sentences

statements of our goals, intentions and expectations;

statements regarding our business plans, prospects, growth and operating strategies;

statements regarding our business plans, prospects, financial performance, growth and operating strategies;

statements regarding the quality of our loan and investment portfolios;

4 unchanged sentences

general economic conditions, either nationally or in our market area, that are worse than expected, including potential recessionary conditions;

the imposition of tariffs or other domestic or international governmental policies;

changes in the amount and trend of loan delinquencies, charge-offs and non-performing and classified loans and changes in estimates of the adequacy of and the methodology for calculating the allowance for credit losses;

18 unchanged sentences

risks as it relates to cyber security against our information technology and those of our third-party providers and vendors;

the failure to maintain current technologies;

the current or anticipated impact of military conflict, terrorism or other geopolitical events;

6 unchanged sentences

Actual results could differ from these judgments and estimates under different conditions, resulting in a change that could have a material impact on the carrying values of our assets and liabilities and our results of operations.

Comparison of Financial Condition at September 30, 2024 and December 31, 2023

Comparison of Financial Condition at March 31, 2025 and December 31, 2024

Total Assets.

Assets increased $39.6 million, or 4.2%, from $939.3 million at December 31, 2023 to $978.9 million at September 30, 2024 primarily due to a $39.7 million, or 57.6%, increase in securities available for sale and an $7.4 million, or 10.3%, increase in securities held-to-maturity, offset by a $5.8 million, or 0.8%, decrease in loans and a $3.9 million, or 15.8%, decrease in cash and cash equivalents.

Assets decreased $41.3 million, or 4.3%, from $971.5 million at December 31, 2024 to $930.2 million at March 31, 2025 due to a $26.6 million, or 51.0%, decrease in cash and cash equivalents, a $10.2 million, or 1.4%, decrease in loans and a $2.6 million, or 1.8%, decrease in securities available for sale.

Cash and Cash Equivalents.

Cash and cash equivalents decreased $3.9 million, or 15.8%, to $21.0 million at September 30, 2024 from $24.9 million at December 31, 2023 , as excess funds from increases in borrowings and deposits were used to purchase securities.

Cash and cash equivalents decreased $26.6 million, or 51.0%, to $25.6 million at March 31, 2025 from $52.2 million at December 31, 2024 , as excess funds were used to pay down borrowings.

Securities Available for Sale.

Securities available for sale increased $39.7 million, or 57.6%, to $108.6 million at September 30, 2024 from $68.9 million at December 31, 2023 .

The increase was primarily due to the purchase of mortgage-backed securities that were purchased with excess funds as part of our leveraging strategy.

Securities Held to Maturity.

Securities held to maturity increased $7.4 million, or 10.3%, to $80.1 million at September 30, 2024 from $72.7 million at December 31, 2023 , primarily due to the purchase of mortgage-backed securities with excess funds.

At September 30, 2024 , the Company's allowance for credit losses related to held-to-maturity securities totaled $108,000 or 0.13% of the total held-to-maturity securities portfolio.

Net loans decreased $5.8 million, or 0.8%, to $708.9 million at September 30, 2024 from $714.7 million at December 31, 2023 .

The decrease was due to a decrease of $12.6 million, or 2.6%, in one- to four-residential real estate loans to $473.5 million from $486.1 million at December 31, 2023 and a decrease of $9.1 million, or 18.4%, in construction loans to $40.2 million at September 30, 2024 from $49.3 million at December 31, 2023 , offset by a $13.1 million, or 13.1%, increase in commercial real estate loans to $112.9 million at September 30, 2024 from $99.8 million at December 31, 2023 , and by a $3.6 million, or 53.6%, increase in commercial and industrial loans to $10.2 million at September 30, 2024 from $6.7 million at December 31, 2023 .

The decreases in one- to four-residential and construction loans reflect less opportunities and decreased demand due to the higher interest rate environment.

As of September 30, 2024 and December 31, 2023 , the Bank had no loans held for sale.

Delinquent loans increased $8.9 million to $21.5 million, or 3.0% of total loans, at September 30, 2024 .

The increase was mostly due to four commercial real estate loans to three customers with a balance of $8.1 million.

Three of the past due commercial real estate loans are being actively managed with the customers and are expected to be brought current, while one totaling $758,000 has been placed on nonaccrual status, but is considered well-secured with a loan-to-value of 59%.

Securities available for sale decreased $2.6 million, or 1.8%, to $137.7 million at March 31, 2025 from $140.3 million at December 31, 2024 .

The decrease was primarily due to maturing securities of $17.0 million exceeding purchases of $13.5 million of securities.

Net loans decreased $10.2 million, or 1.4%, to $701.5 million at March 31, 2025 from $711.7 million at December 31, 2024 .

The decrease was due to a decrease of $6.6 million, or 1.4%, in one- to four-residential real estate loans to $466.1 million from $472.7 million at December 31, 2024 , a decrease of $9.7 million, or 22.4%, in construction loans to $33.5 million at March 31, 2025 from $43.2 million at December 31, 2024 , and a decrease of $1.1 million, or 17.7%, in commercial and industrial loans to $5.1 million at March 31, 2025 from $6.2 million at December 31, 2024 , offset by a by a $7.8 million, or 6.6%, increase in commercial real estate loans to $125.8 million at March 31, 2025 from $118.0 million at December 31, 2024 .

The decreases in one- to four-residential real estate loans and construction loans reflected a decrease in demand for such loans due to the interest rate environment.

As of March 31, 2025 and December 31, 2024 , the Bank had no loans held for sale.

Delinquent loans decreased $842,000 to $13.5 million, or 1.9% of total loans, at March 31, 2025 , compared to $14.3 million, or 2.0% of total loans, at December 31, 2024 .

The decrease was mostly due to the payoff of one commercial real estate loan with a balance of $455,000 and residential loans totaling $387,000 being brought current.

We did not record any specific reserves or charge-offs for these loans.

During the same timeframe, non-performing assets increased from $12.8 million at December 31, 2023 to $13.8 million, which represented 1.41% of total assets at September 30, 2024 .

The Company’s allowance for credit losses was 0.39% of total loans and 19.94% of non-performing loans at September 30, 2024 compared to 0.39% of total loans and 21.81% of non-performing loans at December 31, 2023 .

During the same timeframe, non-performing assets decreased from $14.0 million at December 31, 2024 to $13.9 million, which represented 1.49% of total assets at March 31, 2025 .

The Company’s allowance for credit losses was 0.37% of total loans and 18.65% of non-performing loans at March 31, 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.

The majority of the non-performing loans at September 30, 2024 was comprised of one construction loan for construction of a catering hall that is 99% complete, with a balance of $10.9 million and a loan to value ratio of 45%.

Based on the well-secured nature of the loan, there was no associated specific reserve at September 30, 2024 .

The Company has commenced legal action against the client.

Non-performing loans at March 31, 2025 were primarily comprised of one construction loan for a catering hall that is 99% complete, with a balance of $10.9 million and a loan to value ratio of 45%.

Based on the well-secured nature of the loan, there was no associated specific reserve at March 31, 2025 .

The Company has commenced legal action to foreclose on the property, which is ongoing.

Total Liabilities.

Total liabilities increased $39.7 million, or 5.0%, to $841.9 million as of September 30, 2024 from $802.2 million as of December 31, 2023 , primarily due to a $3.9 million increase in deposits and a $34.9 million increase in borrowings.

Deposits increased $3.9 million, or 0.6%, to $629.2 million at September 30, 2024 from $625.3 million at December 31, 2023 .

The increase in deposits reflected an increase in interest-bearing demand deposits of $1.8 million, or 1.8%, to $103.3 million as of September 30, 2024 from $101.5 million at December 31, 2023 due to the increases of $4.5 million, or 5.2%, in checking and savings accounts, offset by a $2.6 million, or 18.1%, decrease in money market accounts.

Certificates of deposit increased $505,000, or 0.1%, to $493.8 million at September 30, 2024 from $493.3 million at December 31, 2023 .

Non-interest bearing deposits increased $1.5 million, or 5.2%, to $32.1 million as of September 30, 2024 from $30.6 million as of December 31, 2023.

The changes reflected customers’ desire for higher-yielding accounts in the higher interest rate environment.

At September 30, 2024 , municipal deposits totaled $36.0 million, which represented 5.7% of total deposits, and brokered deposits totaled $101.1 million, which represented 16.1% of deposits.

Total liabilities decreased $42.3 million, or 5.1%, to $791.9 million as of March 31, 2025 from $834.2 million as of December 31, 2024 , primarily due to a $32.4 million decrease in borrowings and a $9.2 million decrease in deposits.

Deposits decreased $9.2 million, or 1.4%, to $633.0 million at March 31, 2025 from $642.2 million at December 31, 2024 .

The decrease in deposits reflected a decrease in certificates of deposit of $17.3 million, or 3.5%, to $476.0 million as of March 31, 2025 from $493.3 million at December 31, 2024 and a $1.2 million, or 8.3%, decrease in money market accounts.

The decreases were offset by a $6.6 million, or 11.9%, increase in NOW accounts, and by a $2.4 million, or 5.2%, increase in savings accounts.

The changes reflected customers’ uncertainty about the lower rate environment and market opportunities.

At March 31, 2025 , municipal deposits totaled $39.2 million, which represented 6.2% of total deposits, and brokered deposits totaled $94.2 million, which represented 14.9% of deposits.

At December 31, 2024 , municipal deposits totaled $30.7 million, which represented 4.8% of deposits, and brokered deposits totaled $101.6 million, which represented 15.8% of total deposits.

At September 30, 2024 , uninsured deposits totaled $64.1 million, comprised of 296 account holders, which represented 10.2% of total deposits.

Federal Home Loan Bank of New York borrowings increased $34.9 million, or 20.8%, to $202.6 million at September 30, 2024 from $167.7 million at December 31, 2023 .

Specifically short-term advances increased by $16.0 million while long-term advances increased $18.9 million which is part of our leveraging strategy that will allow the Company to better position itself to take advantage of potential rate cuts.

The weighted average rate of borrowings was 4.62% and 4.54% as of September 30, 2024 and December 31, 2023 , respectively.

Total borrowing capacity at the Federal Home Loan Bank was $297.9 million at September 30, 2024 , of which $202.6 million was advanced.

At March 31, 2025 , uninsured deposits totaled $49.8 million, comprised of 224 account holders, which represented 7.9% of total deposits.

Federal Home Loan Bank of New York borrowings decreased $32.4 million, or 18.8%, to $139.8 million at March 31, 2025 from $172.2 million at December 31, 2024 .

Specifically short-term advances decreased by $5.0 million while long-term advances decreased $27.4 million.

The weighted average rate of borrowings was 4.52% and 4.49% as of March 31, 2025 and December 31, 2024 , respectively.

The increased rate in the lower rate environment reflected shorter maturities of the borrowings.

Total borrowing capacity at the Federal Home Loan Bank was $261.9 million at March 31, 2025 , of which $139.8 million has been advanced.

Total Equity.

Stockholders’ equity decreased $233,000 to $136.9 million, primarily due to a net loss of $1.2 million and the repurchase of 196,873 shares of stock during the nine months ended September 30, 2024 at a cost of $1.4 million, offset by a decrease in accumulated other comprehensive loss for securities available for sale of $1.6 million and stock compensation of $668,000 for the nine months ended September 30, 2024 .

At September 30, 2024 , the Company’s ratio of average stockholders’ equity-to-average total assets was 14.01%, compared to 15.24% at December 31, 2023 .

Stockholders’ equity increased $965,000 to $138.3 million, primarily due to net income of $731,000 and by a decrease in accumulated other comprehensive loss of $360,000, offset by the repurchase of 50,211 shares at a cost of $398,000 .

At March 31, 2025 , the Company’s ratio of average stockholders’ equity-to-average total assets was 14.59%, compared to 13.99% at December 31, 2024 .

Average Balance Sheets and Related Yields and Rates

4 unchanged sentences

Loan fees are included in interest income on loans and are not material.

Three Months Ended September 30,

Average Balance

Interest and Dividends

Yield/ Cost (1)

Average Balance

Interest and Dividends

Yield/ Cost (1)

(Dollars in thousands)

Cash and cash equivalents

Other interest-earning assets

Total interest-earning assets

Non-interest-earning assets

Liabilities and equity:

NOW and money market accounts

Savings accounts

Certificates of deposit (1)

Total interest-bearing deposits

Federal Home Loan Bank advances (1)

Total interest-bearing liabilities

Non-interest-bearing deposits

Other non-interest-bearing liabilities

Total liabilities

Total liabilities and equity

Net interest income

Interest rate spread (2)

Net interest margin (3)

Average interest-earning assets to average interest-bearing liabilities

(1) Cash flow and fair value hedges are used to manage interest rate risk.

During the three months ended September 30, 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 $498,000 and $115,000 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.

Nine Months Ended September 30,

Three Months Ended March 31,

Average Balance

25 unchanged sentences

(1) Cash flow and fair value hedges are used to manage interest rate risk.

During the nine months ended September 30, 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 $1.2 million and $254,000 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.

6 unchanged sentences

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 September 30, 2024

Nine Months Ended September 30, 2024

Three Months Ended September 30, 2023

Nine Months Ended September 30, 2023

Increase (Decrease) Due to

Three Months Ended March 31, 2025

Three Months Ended March 31, 2024

Increase (Decrease) Due to

11 unchanged sentences

Total interest-bearing liabilities

Net decrease in net interest income

Comparison of Operating Results for the Three Months Ended September 30, 2024 and September 30, 2023

Net income decreased by $338,000 to a net loss of $367,000 for the three months ended September 30, 2024 from a net loss of $29,000 for the three months ended September 30, 2023 .

This decrease was primarily due to a decrease of $560,000 in net interest income, partially offset by a decrease of $56,000 in non-interest expense, an increase of $128,000 in income tax benefit and a $38,000 increase in non-interest income.

Interest Income.

Interest income increased $1.3 million, or 14.3%, from $9.3 million for the three months ended September 30, 2023 to $10.6 million for the three months ended September 30, 2024 primarily due to higher yields on interest-earning assets and an increase in the average balance of securities.

Interest income on cash and cash equivalents decreased $30,000, or 17.9%, to $138,000 for the three months ended September 30, 2024 from $168,000 for the three months ended September 30, 2023 due to a $2.6 million decrease in the average balance to $10.2 million for the three months ended September 30, 2024 from $12.8 million for the three months ended September 30, 2023 , reflecting the use of excess cash to purchase securities.

The decrease was offset by an 18 basis point increase in the average yield from 5.21% for the three months ended September 30, 2023 to 5.39% for the three months ended September 30, 2024 , due to the higher interest rate environment.

Interest income on loans increased $400,000, or 5.0%, to $8.4 million for the three months ended September 30, 2024 compared to $8.0 million for the three months ended September 30, 2023 due primarily to a 24 basis point increase in the average yield from 4.45% for the three months ended September 30, 2023 to 4.69% for the three months ended September 30, 2024 , and to a lesser extent, a $876,000 increase in the average balance to $711.6 million for the three months ended September 30, 2024 from $710.7 million for the three months ended September 30, 2023 .

Interest income on securities increased $889,000, or 88.2%, to $1.9 million for the three months ended September 30, 2024 from $1.0 million for the three months ended September 30, 2023 primarily due to a $48.7 million increase in the average balance to $187.2 million for the three months ended September 30, 2024 from $138.5 million for the three months ended September 30, 2023 , and a 114 basis point increase in the average yield from 2.91% for the three months ended September 30, 2023 to 4.05% for the three months ended September 30, 2024 due to the higher interest rate environment.

Interest Expense.

Interest expense increased $1.9 million, or 31.1%, from $6.1 million for the three months ended September 30, 2023 to $8.0 million for the three months ended September 30, 2024 due to higher costs and average balances on interest-bearing liabilities.

Interest expense on interest-bearing deposits increased $1.3 million, or 27.0%, to $6.2 million for the three months ended September 30, 2024 from $4.9 million for the three months ended September 30, 2023 .

The increase was due to a 93 basis point increase in the average cost of deposits to 4.04% for the three months ended September 30, 2024 from 3.11% for the three months ended September 30, 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 to a greater concentration of higher-costing certificates of deposit.

The average balances of certificates of deposit decreased $831,000 to $497.3 million for the three months ended September 30, 2024 from $498.1 million for the three months ended September 30, 2023 .

The average balance of savings accounts decreased by $2.1 million during the quarter, while the average balance of NOW and money market accounts decreased $9.0 million for the three months ended September 30, 2024 , compared to the three months ended September 30, 2023 .

Interest expense on Federal Home Loan Bank advances increased $582,000, or 47.7%, from $1.2 million for the three months ended September 30, 2023 to $1.8 million for the three months ended September 30, 2024 .

The increase was due to an increase in the average balance of $71.6 million to $196.9 million for the three months ended September 30, 2024 .

The increase was offset by a 22 basis point decrease in the average cost of borrowings to 3.64% for the three months ended September 30, 2024 from 3.86% for the three months ended September 30, 2023 due to the new borrowings being at lower rates.

Net Interest Income.

Net interest income decreased $560,000, or 17.4%, to $2.7 million for the three months ended September 30, 2024 from $3.2 million for the three months ended September 30, 2023 .

The decrease reflected a 35 basis point decrease in our net interest rate spread to 0.66% for the three months ended September 30, 2024 from 1.01% for the three months ended September 30, 2023 .

Our net interest margin decreased 32 basis points to 1.15% for the three months ended September 30, 2024 from 1.47% for the three months ended September 30, 2023 .

Provision for Credit Losses.

We did not record a provision for credit losses for the three months ended September 30, 2024 or September 30, 2023 due to the decrease in loans.

Non-Interest Income.

Non-interest income increased by $37,000, or 13.0%, to $327,000 for the three months ended September 30, 2024 from $290,000 for the three months ended September 30, 2023 .

Bank-owned life insurance income increased $23,000, or 11.7%, due to higher balances during 2024 , and gain on sale of loans increased $12,000 compared to no gain on sale of loans for the three months ended September 30, 2023 .

Non-Interest Expense.

For the three months ended September 30, 2024 , non-interest expense decreased $56,000, or 1.5%, over the comparable 2023 period.

This was due to a $171,000, or 7.5% reduction in salaries and employee benefits, which decreased due to lower headcount, and a $40,000, or 31.9%, decrease in advertising expenses.

Our FDIC insurance assessment also decreased by $26,000, or 19.8%.

These decreases were offset by an increase in professional fees of $99,000, or 70.6%, due to higher consulting expense related to strategic business planning.

Data processing expense also increased $100,000, or 48.8%, due to higher processing costs.

Income Tax Expense.

Income tax benefit increased $128,000, or 102.1%, to a benefit of $253,000 for the three months ended September 30, 2024 from a $125,000 benefit for the three months ended September 30, 2023 .

The decrease was due to $466,000 of lower taxable income.

Comparison of Operating Results for the Nine Months Ended September 30, 2024 and September 30, 2023

Net income decreased by $3.1 million, or 168.1%, to a net loss of $1.2 million for the nine months ended September 30, 2024 from net income of $1.8 million for the nine months ended September 30, 2023 .

This decrease was primarily due to a decrease of $4.0million in net interest income, partially offset by a decrease of $1.2 million in income tax expense.

Net (decrease) increase in net interest income

Comparison of Operating Results for the Three Months Ended March 31, 2025 and March 31, 2024

Net income increased by $1.2 million to $731,000 for the three months ended March 31, 2025 from a net loss of $441,000 for the three months ended March 31, 2024 .

The increase was primarily due to an increase of $942,000 in net interest income, and a $590,000 increase in non-interest income, partially offset by an increase of $300,000 in occupancy and equipment costs, and a decrease of $259,000 in income tax benefit .

Interest Income.

Interest income increased $3.4 million, or 12.4%, from $27.7 million for the nine months ended September 30, 2023 to $31.1 million for the nine months ended September 30, 2024 due to higher yields on interest-earning assets and an increase in the average balance of securities, partially offset by a decrease in the average balance of loans and cash and cash equivalents.

Interest income on cash and cash equivalents decreased $8,000, or 1.9%, to $415,000 for the nine months ended September 30, 2024 from $423,000 for the nine months ended September 30, 2023 due to a $2.3 million decrease in the average balance to $9.1 million for the nine months ended September 30, 2024 from $11.4 million for the nine months ended September 30, 2023 , reflecting the decrease of liquidity due to increased securities purchases.

This decrease was offset by a 111 basis point increase in the average yield from 4.98% for the nine months ended September 30, 2023 to 6.09% for the nine months ended September 30, 2024 due to the higher interest rate environment.

Interest income on loans increased $1.1 million, or 4.5%, to $24.9 million for the nine months ended September 30, 2024 compared to $23.8 million for the nine months ended September 30, 2023 due primarily to a 20 basis point increase in the average yield from 4.46% for the nine months ended September 30, 2023 to 4.66% for the nine months ended September 30, 2024 , offset by a $1.9 million decrease in the average balance to $711.7 million for the nine months ended September 30, 2024 from $713.6 million for the nine months ended September 30, 2023 .

Interest income on securities increased $2.2 million, or 69.4%, to $5.3 million for the nine months ended September 30, 2024 from $3.1 million for the nine months ended September 30, 2023 primarily due to a 112 basis point increase in the average yield from 2.80% for the nine months ended September 30, 2023 to 3.92% for the nine months ended September 30, 2024 , and a $31.0 million increase in the average balance to $179.8 million for the nine months ended September 30, 2024 from $148.8 million for the nine months ended September 30, 2023 .

Interest income increased $862,000, or 8.6%, from $10.1 million for the three months ended March 31, 2024 to $10.9 million for the three months ended March 31, 2025 primarily due to higher yields on interest-earning assets.

Interest income on cash and cash equivalents increased $115,000, or 76.7%, to $265,000 for the three months ended March 31, 2025 from $150,000 for the three months ended March 31, 2024 due to a $6.7 million increase in the average balance to $16.6 million for the three months ended March 31, 2025 from $9.9 million for the three months ended March 31, 2024 , reflecting the decrease in loans and securities.

The increase was augmented by an 27 basis point increase in the average yield from 6.10% for the three months ended March 31, 2024 to 6.37% for the three months ended March 31, 2025 .

Interest income on loans increased $396,000, or 4.8%, to $8.6 million for the three months ended March 31, 2025 compared to $8.2 million for the three months ended March 31, 2024 due primarily to a 27 basis point increase in the average yield from 4.61% for the three months ended March 31, 2024 to 4.88% for the three months ended March 31, 2025 , which was offset by a $8.3 million decrease in the average balance to $705.1 million for the three months ended March 31, 2025 from $713.4 million for the three months ended March 31, 2024 .

Interest income on securities increased $304,000, or 19.9%, to $1.8 million for the three months ended March 31, 2025 from $1.5 million for the three months ended March 31, 2024 primarily due to a 138 basis point increase in the average yield from 3.67% for the three months ended March 31, 2024 to 5.05% for the three months ended March 31, 2025 due to a rebalancing of the balance sheet in the fourth quarter of 2024.

This was partially offset by a $21.4 million decrease in the average balance to $145.3 million for the three months ended March 31, 2025 from $166.7 million for the three months ended March 31, 2024 .

Interest Expense.

Interest expense increased $7.4 million, or 47.4%, from $15.7 million for the nine months ended September 30, 2023 to $23.1 million for the nine months ended September 30, 2024 , primarily due to higher costs and higher average balances on certificates of deposit and borrowings.

Interest expense on interest-bearing deposits increased $5.6 million, or 43.9%, to $18.4 million for the nine months ended September 30, 2024 from $12.8 million for the nine months ended September 30, 2023 .

The increase was due to a 128 basis point increase in the average cost of deposits to 3.95% for the nine months ended September 30, 2024 from 2.67% for the nine months ended September 30, 2023 .

The average balances of certificates of deposit increased $12.0 million to $510.5 million for the nine months ended September 30, 2024 from $498.5 million for the nine months ended September 30, 2023 while average NOW and money market accounts and savings accounts decreased $24.2 million and $5.7 million for the nine months ended September 30, 2024 , respectively, compared to the nine months ended September 30, 2023 .

Interest expense on Federal Home Loan Bank advances increased $1.8 million, or 62.7%, from $2.9 million for the nine months ended September 30, 2023 to $4.7 million for the nine months ended September 30, 2024 .

The increase was due to an increase in the average balance of $60.7 million to $171.6 million for the nine months ended September 30, 2024 .

The increase was also due to an increase in the average cost of borrowings of 17 basis points to 3.67% for the nine months ended September 30, 2024 from 3.50% for the nine months ended September 30, 2023 due to the new borrowings being at higher rates.

Interest expense decreased $80,000, or 1.1%, from $7.4 million for the three months ended March 31, 2024 to $7.3 million for the three months ended March 31, 2025 due to lower average balances on certificates of deposit, offset by an increase in average borrowing and borrowing costs.

Interest expense on interest-bearing deposits decreased $208,000, or 3.5%, to $5.8 million for the three months ended March 31, 2025 from $6.0 million for the three months ended March 31, 2024 .

The decrease was primarily due to lower average balances on certificates of deposit, which decreased to $484.3 million for the three months ended March 31, 2025 from $516.5 million for the three months ended March 31, 2024 .

The decrease was offset by an increase in the average balances of NOW and money market accounts, which increased by $10.0 million, from $69.4 million for the three months ended March 31, 2024 to $79.4 million for the three months ended March 31, 2025 , and due to higher cost of borrowings for those accounts which increased 40 basis points from 1.94% for the three months ended March 31, 2024 , to 2.34% for the three months ended March 31, 2025 .

Interest expense on Federal Home Loan Bank advances increased $128,000, or 8.9%, from $1.4 million for the three months ended March 31, 2024 to $1.6 million for the three months ended March 31, 2025 .

The increase was due to an increase in the average balance of $4.8 million to $158.1 million for the three months ended March 31, 2025 .

The increase was also due to a 24 basis point increase in the average cost of borrowings to 4.02% for the three months ended March 31, 2025 from 3.78% for the three months ended March 31, 2024 due to the new borrowings being shorter durations at higher rates.

Net Interest Income.

Net interest income decreased $3.9 million, or 33.1%, to $8.1 million for the nine months ended September 30, 2024 from $12.0 million for the nine months ended September 30, 2023 .

The decrease reflected a 73 basis point decrease in our net interest rate spread to 0.68% for the nine months ended September 30, 2024 from 1.41% for the nine months ended September 30, 2023 .

Our net interest margin decreased 64 basis points to 1.18% for the nine months ended September 30, 2024 from 1.82% for the nine months ended September 30, 2023 .

Net interest income increased $942,000, or 35.5%, to $3.6 million for the three months ended March 31, 2025 from $2.7 million for the three months ended March 31, 2024 .

The increase reflected a 44 basis point increase in our net interest rate spread to 1.12% for the three months ended March 31, 2025 from 0.68% for the three months ended March 31, 2024 .

Our net interest margin increased 48 basis points to 1.66% for the three months ended March 31, 2025 from 1.18% for the three months ended March 31, 2024 .

Provision for Credit Losses.

We recorded a $70,000 provision for credit losses for the nine months ended September 30, 2024 compared to a $125,000 recovery for credit losses for the nine -month period ended September 30, 2023 .

The entire provision during the period was due to a $108,000 provision for held-to-maturity securities due to an increase in corporate securities, which was offset by a $38,000 credit to the provision for loans due to a decrease in the loan portfolio.

We recorded an $80,000 recovery of credit losses for the three months ended March 31, 2025 compared to a $35,000 provision for credit losses for the three months ended March 31, 2024 .

The decrease in the allowance for credit losses was due to the decrease in loans and held-to-maturity securities.

Non-Interest Income.

Non-interest income increased by $73,000, or 8.5%, to $929,000 for the nine months ended September 30, 2024 from $856,000 for the nine months ended September 30, 2023 .

Bank-owned life insurance income increased $74,000, or 12.9%, due to higher balances during 2024 .

Non-interest income increased by $590,000, or 197.4%, to $889,000 for the three months ended March 31, 2025 from $299,000 for the three months ended March 31, 2024 .

Bank-owned life insurance income increased $550,000, or 259.5%, due to a death benefit receivable related to a former employee and higher balances during 2025 .

Additionally, we had a gain on the sale of one loan of $29,000 compared to no gain on sale of loans for the three months ended March 31, 2024 .

Non-Interest Expense.

For the nine months ended September 30, 2024 , non-interest expense increased $163,000, or 1.5%, over the comparable 2023 period.

Professional fees increased $270,000, or 65.5% due to higher consulting expense related to strategic business planning.

Data processing expense increased $210,000, or 29.3%, due to higher processing costs.

These were offset by a $333,000, or 4.9%, reduction in salaries and employee benefit costs, which decreased due to lower headcount.

For the three months ended March 31, 2025 , non-interest expense increased $217,000, or 5.9%, over the comparable 2024 period.

This was due to a $300,000, or 80.9%, increase in occupancy and equipment expense, which increased as a result of increased occupancy costs related to the sale leaseback transaction that was completed in the fourth quarter of 2024, offset by a $78,000, or 3.6%, decrease in salaries and benefits costs, which was a result of reduced headcount.

Income Tax Expense.

Income tax expense decreased $1.2 million, or 312.9%, to a benefit of $821,000 for the nine months ended September 30, 2024 from a $386,000 expense for the nine months ended September 30, 2023 .

The decrease was due to $4.3 million of lower taxable income.

Income tax benefit decreased $259,000, or 90.2%, to a benefit of $28,000 for the three months ended March 31, 2025 from a $287,000 benefit for the three months ended March 31, 2024 .

The decrease was due to an increase of $1.4 million of taxable income.

Management of Market Risk

4 unchanged sentences

Accordingly, our board of directors has established an Asset/Liability Management Committee (the “ALCO”), which is comprised of three members of executive management and two independent directors, which oversees the asset/liability management processes and related procedures.

The ALCO meets on at least a quarterly basis and reviews asset/liability strategies, liquidity positions, alternative funding sources, interest rate risk measurement reports, capital levels and economic trends at both national and local levels.

The ALCO meets on at least a quarterly basis and reviews asset/liability strategies, liquidity position, alternative funding sources, interest rate risk measurement reports, capital levels and economic trends at both national and local levels.

Our interest rate risk position is also monitored quarterly by the board of directors.

16 unchanged sentences

We currently calculate NPV under the assumptions that interest rates increase 100, 200, 300 and 400 basis points from current market rates and that interest rates decrease 100, 200, 300 and 400 basis points from current market rates.

The following table presents the estimated changes in our net portfolio value that would result from changes in market interest rates as of September 30, 2024 .

The following table presents the estimated changes in our net portfolio value that would result from changes in market interest rates as of March 31, 2025 .

All estimated changes presented in the table are within the policy limits approved by the board of directors.

14 unchanged sentences

Assumptions are supported with quarterly back testing of the model to actual market rate shifts.

As of September 30, 2024 , net interest income simulation results indicated that its exposure over one year to changing interest rates was within our guidelines.

As of March 31, 2025 , net interest income simulation results indicated that its exposure over one year to changing interest rates was within our guidelines.

The following table presents the estimated impact of interest rate changes on our estimated net interest income over one year:

13 unchanged sentences

We also borrow from the Federal Home Loan Bank of New York.

At September 30, 2024 , we had the ability to borrow up to $297.9 million, of which $202.7 million was outstanding and $1.2 million was utilized as collateral for letters of credit issued to secure municipal deposits.

At September 30, 2024 , we had $54.0 million in unsecured lines of credit with four correspondent banks with no outstanding balance.

At March 31, 2025 , we had the ability to borrow up to $261.9 million, of which $139.8 million was outstanding and $5.7 million was utilized as collateral for letters of credit issued to secure municipal deposits.

At March 31, 2025 , we had $54.0 million in unsecured lines of credit with four correspondent banks with no outstanding balance.

The board of directors is responsible for establishing and monitoring our liquidity targets and st rategies in order to ensure that sufficient liquidity exists for meeting the borrowing needs and deposit withdrawals of our customers as well as unanticipated contingencies.

We believe that we had ample sources of liquidity to satisfy our short- and long-term liquidity needs as of September 30, 2024 .

While maturities and scheduled amortization of loans and securities are predictable sources of funds, deposit flows and loan prepayments are greatly influenced by market interest rates, economic conditions, and competition.

We believe that we had ample sources of liquidity to satisfy our short- and long-term liquidity needs as of March 31, 2025 .

While maturities and scheduled amortization of loans and securities are predictable sources of funds, deposit flows, loan prepayments and loan and security sales are greatly influenced by market interest rates, economic conditions, and competition.

Our most liquid assets are cash and cash equivalents.

The levels of these assets are dependent on our operating, financing, lending and investing activities during any period.

At September 30, 2024 , cash and cash equivalents totaled $21.0 million.

Securities classified as available-for-sale, which provide additional sources of liquidity, totaled $108.6 million at September 30, 2024 .

At March 31, 2025 , cash and cash equivalents totaled $25.6 million.

Securities classified as available-for-sale, which provide additional sources of liquidity, totaled $137.7 million at March 31, 2025 .

We are committed to maintaining a strong liquidity position.

1 unchanged sentence

We anticipate we will have sufficient funds to meet our current funding commitments.

Certificates of deposit due within one year of September 30, 2024 t otaled $439.7 million, or 69.9% of total deposits.

Certificates of deposit due within one year of March 31, 2025 t otaled $439.7 million, or 69.5% of total deposits.

If these deposits do not remain with us, we will be required to seek other sources of funds, including other deposits and Federal Home Loan Bank of New York advances.

4 unchanged sentences

We are subject to various regulatory capital requirements administered by the New Jersey Department of Banking and Insurance and the Federal Deposit Insurance Corporation.

At September 30, 2024 , we exceeded all applicable regulatory capital requirements, and were considered “well capitalized” under regulatory guidelines.

At March 31, 2025 , we exceeded all applicable regulatory capital requirements, and were considered “well capitalized” under regulatory guidelines.

As a result of the Economic Growth, Regulatory Relie f, and Consumer Protection Act, as modified in April 2020, the federal banking agencies were required to develop a “Community Bank Leverage Ratio” (the ratio of a bank's Tier 1 “equity capital to average total consolidated assets) for financial institutions with less than $10 billion.

A “qualifying community bank” with capital exceeding 9% will be considered compliant with all applicable regulatory capital and leverage requirements, including the capital requirements to be considered "well capitalized” under Prompt Corrective Action statutes.

As of September 30, 2024 , the Bank is reporting as a qualifying community bank with a ratio of 13.12%.

As of March 31, 2025 , the Bank reported as a qualifying community bank with a ratio of 15.00%.

Substantially all of the Company's assets and liabilities relate to banking activities and are monetary.

8 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements